Mercedes-Benz Shakes Off ‘Dad’s Car’ Image in Indonesia
In this article (5)
German automaker Mercedes-Benz is focusing on young Indonesians as part of its strategy to boost sales in the country, shaking off the “dad’s car” image along the way.
“We’re opening up new segments that are characterized by younger buyers, people who may not have considered Mercedes-Benz previously,” Roelof Lamberts, Mercedes-Benz Indonesia’s sales and marketing director, said on Thursday.
The company has rolled out six new models so far this year including the latest B-Class and CLA-class, catering to young entrepreneurs’ demand for more sporty and compact premium cars.
“We are shifting generations,” said Ananta Wisesa, a Mercedes-Benz spokesman, “So, [Mercedes-Benz] will lose its dad’s car image.”
Cars introduced this year, including the A-Class and GLA-Class, are sold for less than Rp 1 billion ($71,000), and “have seen very positive demand,” said Lamberts. The introduction of these models has helped the company buck the trend of a shrinking auto market in Indonesia amid slowing economic expansion.
The German company sold 1,800 cars during the first seven months this year, a 20 percent increase from the 1,500 cars it sold in the same period last year.
In contrast, total car sales in Indonesia shrunk 21 percent to 581,106 units during the period, according to the Indonesian Automotive Manufacturers Association, or Gaikindo.
Mercedes-Benz now controls 49 percent of the premium car market, up from 38 percent in the same period last year.
“Our strategy basically is in line with the overall Mercedes-Benz strategy, and that is to become number one in the premium segment,” Lamberts said. “In Indonesia, we’re number one. Our objective is to defend that position.”
Questions & Answers
Q.What is Mercedes-Benz's main objective for the Indonesian market?
What is Mercedes-Benz's main objective for the Indonesian market?
Mercedes-Benz aims to become and remain the number one brand in the premium car segment in Indonesia. This strategy aligns with the company's global objectives for its premium offerings.
Q.Which specific models has Mercedes-Benz introduced to appeal to younger buyers?
Which specific models has Mercedes-Benz introduced to appeal to younger buyers?
The company has rolled out six new models this year, including the latest B-Class and CLA-class. The A-Class and GLA-Class are also mentioned as newer, more affordable models aimed at this demographic.
Q.How has Mercedes-Benz's sales performance compared to the overall Indonesian car market?
How has Mercedes-Benz's sales performance compared to the overall Indonesian car market?
Mercedes-Benz sold 1,800 cars in the first seven months, a 20 percent increase. In contrast, the total Indonesian car market shrunk by 21 percent over the same period, showing their growth against the trend.
Reader pulse
Is Mercedes-Benz's youth strategy sustainable?
16,189 votes so far