Institut Teknologi Bandung, 09 December ‘12
Mr. Jodjana J. – Chief Executive Officer
Auto 2000
Toyota & Automotive Market – The Milestone
Toyota’s Success Story 2
Content:
Future Opportunities & Challenges
1
2
3
Toyota & Automotive Market – The Milestone
Toyota’s Success Story 2
Content:
Future Opportunities & Challenges
1
2
3
MARKET & TOYOTA SHARE
Toyota & Automotive Market 1
176,941
77,517
262,749
324,680
498,152
319,726
402,787
560,097
458,083
686,035
1,065,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Market
24.6
28.5 28.6
31.4
28.5 29.1 30.5 31.3
35.2
39.9
36.9 36.4
40.5 39.7
36.8 37.4
Toyota Market Share (%) Oil Price Hike
Global Financial Crisis
*) 2012 Full Year Projection
COMPETITION MAP
Maker 2000 2012 (Jan – Oct)
# of Model M/S (%) # of Model M/S (%)
Toyota 10 28.8 19 36.5
Daihatsu 3 9.0 6 14.8
Mitsubishi 11 21.6 13 13.4
Suzuki 6 14.7 11 10.8
Honda 3 2.8 7 5.7
Nissan 4 0.7 13 6.4
Others 65 22.4 131 12.4
Total 102 100 190 100
Toyota & Automotive Market 1
TOYOTA – INDONESIA’s POSITION
Rank 2006 2007 2008 2009 2010 2011 Rank
1 USA USA USA USA USA USA 1
2 JAPAN JAPAN JAPAN JAPAN JAPAN JAPAN 2
3 CHINA CHINA CHINA CHINA CHINA CHINA 3
4 THAILAND THAILAND THAILAND THAILAND THAILAND INDONESIA 4
5 AUSTRALIA AUSTRALIA AUSTRALIA SAUDI ARABIA INDONESIA THAILAND 5
6 CANADA CANADA CANADA AUSTRALIA SAUDI ARABIA SAUDI ARABIA 6
7 SAUDI ARABIA SAUDI ARABIA SAUDI ARABIA CANADA AUSTRALIA AUSTRALIA 7
8 SOUTH AFRICA RUSSIA RUSSIA INDONESIA TAIWAN CANADA 8
9 GERMANY SOUTH AFRICA INDONESIA GERMANY OMAN 9
10 UK INDONESIA OTHERS AFRICA UK CANADA 10
11 ITALY 11
12 INDONESIA 12
Toyota & Automotive Market 1
TOYOTA’s BUSINESS CHAIN
TOYOTA MOTOR
CORPORATION
(Principal)
TOYOTA ASTRA
MOTOR
(ATPM & Distributor)
HADJI KALLA
NEW RATNA
MOTOR
HASJRAT
ABADI
AGUNG
AUTOMALL
SO ASTRA
INTERNATIONAL
(Corporate)
DEALER
Toyota & Auto 2000 Overview 2
AGUNG AUTOMALL
NEW RATNA MOTOR
HADJI KALLA
HASJRAT ABADI
Toyota & Auto 2000 Overview 2
TOYOTA – MAIN DEALER COVERAGE
NETWORK TOTAL
DKI 78
WEST JAVA 29
EAST JAVA 36
SUMATERA 19
NATIONAL 162
78% of Toyota Indonesia
Customer
Branch Dealer General
Repair
Mainte
nance
Body
Repair
Parts
Counter
Dealer &
Part shop
New Car Service Parts
EM
Stall
Regular
Stall
AUTO 2000’s BUSINESS MODEL
Toyota & Auto 2000 Overview 2
CHIEF
EXECUTIVE
CHIEF
MARKETING
CHIEF
OPERATION
HUMAN
CAPITAL &
GENERAL
SERVICES
FINANCE &
ADMINISTRATION
MARKETING AFTER SALES
OPERATION :
-DKI
-West Java
-East Java +
-Sumatra
Toyota & Auto 2000 Overview 2
AUTO 2000’s ORGANIZATION
Toyota & Automotive Market – The Milestone
Toyota’s Success Story 2
Content:
Future Opportunities & Challenges
2 2 1
2 3
Customer
Productivity
Satisfaction
Expertise
Loyalty
Loyalty
Satisfaction
Value
Profit
External Service Quality
Employee
Internal Service Quality
Toyota’s Success Story 2
THE FRAMEWORK:
Service-Profit Chain Harvard group (James L. Heskett, Thomas Jones,
Gary Loveman, W. Earl Sasser, and Leonard
Schlesinger)
KSF : Delivering Customer Service Excellence
The way we
‘act’ The way we
‘serve’ The way we
‘promise’
Ease
Personal
Reliable
Auto 2000 culture :
Focus on Customer
Integrity
Respect for others
Strive for excellence
Teamwork
AUTO 2000’s CUSTOMER VALUE
Good Corporate
Governance
a. Fairness
b. Efficiency
c. Transparency
d. Accountability
Toyota’s Success Story 2
PERFECT HANDLING
TOTAL CUSTOMER OWNERSHIP EXPERIENCE
PROVIDE BEST TOTAL OWNERSHIP EXPERIENCE
OWN
Toyota’s Success Story 2
AUTO 2000’s CUSTOMER VALUE
Toyota’s Success Story 2
Toyota & Automotive Market – The Milestone
Toyota’s Success Story 2
Content:
Future Opportunities & Challenges
2 2 1
2 3
BUSINESS OPPORTUNITIES
Future Opportunities & Challenges 3
Indicator 2011 2012 2013 2014 2015 2016
a. Household Consumption 4.7 4.7 – 5.1 4.6 – 5.0 4.7 – 5.3 4.8 – 5.6 4.8 – 5.6
b. Government Consumption 3.2 5.7 – 6.1 4.2 – 4.6 3.6 – 4.2 3.3 – 4.1 3.0 – 3.8
c. Export 13.6 10.6 – 11.1 12.3 – 12.7 12.6 – 13.2 13.0 – 13.8 13.4 – 14.2
d. Import 13.3 11.6 – 12.0 14.3 – 14.7 15.5 – 16.1 16.1 – 16.9 16.4 – 17.2
e. Gross Domestic Product 6.5 6.3 – 6.7 6.4 – 6.8 6.4 – 7.0 6.5 – 7.3 6.6 – 7.4
f. Inflation 3.8 4.5% ± 1.0% 4.5% ± 1.0% 4.5% ± 1.0% 4.0% ± 1.0% 4.0% ± 1.0%
1. Steady Economic Growth
2. Increasing Middle Class Segment ( 38% in 2003 50% in 2010)
*) Source : World Bank, June 2012
BUSINESS OPPORTUNITIES
Future Opportunities & Challenges 3
3. Indonesia still in the Pre Motorization Stage
POTENTIAL FOR ACCELERATED MARKET GROWTH
Future Opportunities & Challenges 3
1. Government Regulation impacting to Automotive Market
BUSINESS CHALLENGES
1. Low Carbon Emission
Low Cost Green Car
LCGC will be the key trend & create new
segment : Good possibility of fiscal
incentive for the automakers
Hybrid Car Program
Government will release government
policy related to hybrid car technology
Import duty will be set to zero percent in
2 years but the automotive industry who
get the incentive should establish hybrid
technology assembly plant in Indonesia
Fuel Subsidy New Regulation
Based on RUU APBN-P 2012 Article 7 par. 6A
“Allows government to adjust price fuel if more
than 15% of ICP in average 6 months”
2. Fuel Subsidy New Regulation
3. Government preference
toward local produced cars
Difficulties in securing number of CBU allocation
from the government
Future Opportunities & Challenges 3
BUSINESS CHALLENGES
2. Aggressive Competitor Movement
Mitsubishi
Mirage Honda
Brio
Suzuki A-Star
Suzuki Alto
Suzuki
Ertiga
Nissan
Evalia
60 83
100 179
181
189
229
231 250
2011 Aug ‘12 End of 2012
9%
6%
Nissan
Growth 67%
c. Network
b. Capacity Enhancement
a. Product: MPV, LCC and SUV Segments
Company Invest
ment*
Business
Plan Capacity Year
Toyota 5.2 Plant
Expansion 100K230K 2013
Daihatsu 3.0 New Plant,
R&D 330K430K 2012
Nissan 3.1 New Plant ,
R&D 100K180K 2014
Suzuki 7.8 New Plant 100K200K 2016
Mitsubishi 1 Capacity Up 70K90K 2013
Honda 3.3 New Plant 60K180K 2014
Hyundai ? Capacity Up 23K73K ?
VW 1.4 New Plant 0K60K ?
GM 1.5 Re-Start
operating 0K50K ?
*100Million$
222
243 316
42.3%
Mitsubishi
Outlander
THANK YOU