Signs of the ‘Doomsday’ Dealers in RI are starting to appear, these are the characteristics News – 1 hour ago

Jakarta, CNBC Indonesia – Automotive industry players continue to look for ways to reach their consumers without having to meet them face to face. Car dealers and repair shops have also started to switch to using online systems to sell their products.

However, the role of dealers and repair shops remains alive even though online sales continue to grow. The reason is because a number of spare parts still require handling from technicians directly at dealers or official workshops.

“We also want to try omnichannel again, we will use all methods. But if you only sell online without a store, you can send it but you may not be able to install it. So we have quite a lot of offline stores, we are taking advantage of that,” said the Head of Retail Marketing and Business Development PT Astra Otoparts Lie Se Chiang to CNBC Indonesia, Wednesday (22/11/2023).

Consumers can actually make purchases online via digital platforms, for example for several spare parts such as oil, batteries and tires. However, there are still many consumers who choose to come directly to the location so that problems with their vehicles can be handled immediately. As a result, offline sales still outperform online.

Photo: Electric Motorcycle Sales (CNBC Indonesia/ Muhammad Sabki)
Employees prepare motorbikes that will be brought by consumers at the Uwinfly electric motorbike sales showroom in the Otista area, Jakarta, Friday, November 26 2021. The negative view of Indonesian people towards vehicles that use electric energy as an energy source is slowly starting to fade. This can be seen from the large number of technologically advanced motorbikes sold in the country. Data from the Ministry of Transportation shows that sales of electric cars and motorbikes in Indonesia over the last two years have shown quite a large increase. Based on data on the number of Type Test Registration Certificates (SRUT) from the Ministry of Transportation, as of August 2021, the increase in SRUT issuance for two-wheeled vehicles was three times greater, reaching 7,526 units compared to the previous year. Head of the Uwin Fly Motorcycle Dealer Branch, Wahyudi Amran, said that electric motorbike sales were approximately PO 2000 units per month for bicycles and motorbikes. “Motorcycle prices are sold from IDR 9 million to IDR 15 million for the two-wheeled type. For the three-wheeled type the maximum is IDR 20 million.” He said when interviewed by CNBC Indonesia. Although it is still far below sales of vehicles with conventional engines, this achievement shows the high interest of the Indonesian people in using electric vehicles. Unfortunately, until now there are still several obstacles that make potential consumers hesitate to switch to electric cars and motorbikes. Such as selling prices, battery prices, after-sales support, and infrastructure availability. The National Research and Innovation Agency said that research and innovation activities on electric vehicles could be an important point, to prepare the domestic industry to support the era of electric vehicles in Indonesia. Even though the development of the electric car industry has been going fast, especially in the last three years, to be able to catch up with global development, BRIN will focus on three key technologies, namely motor technology, battery technology and charging station technology. (CNBC Indonesia/ Muhammad Sabki)

“There are still many comparisons in place, the range of 80-20% is definitely dominant for offline ones, the average being repair shops authorized still encouraging all consumers to come, and there are still many ordinary people. But the existence of online sales offsets the role of in stores and online mobility service,” said Lie Se Chiang.

The growing development of online sales in automotive products makes e-commerce see this as an opportunity. E-commerce such as Lazada has even created a special automotive channel, namely Laz Otomotif, because sales in this sector have seen an increase. However, e-commerce claims that selling automotive products online does not mean offline workshops are abandoned.

“Traditional workshops are not marginalized, in fact we have many traditional workshops, so they also sell. However, because many spare parts need installation, these friends provide a bridge in installation. And our automotive products have also tripled in the past few years, ” said VP Automotive Category Lazada Indonesia Sophisticated Satriatama to CNBC Indonesia, Wednesday (22/11/23).

The existence of a digital platform cannot be seen as a competitor for existing dealers. On the other hand, the dealer’s reach can expand because the products sold can be better conveyed to more people. As a result, this condition has not led to a ‘dealer apocalypse’ because both online and dealer sales go hand in hand.

“In fact, we collaborate with dealer friends because after buying a vehicle, the journey to enjoy the vehicle is quite massive, how to provide facilities for purchasing a vehicle. So don’t be seen as competitors, in fact we are here to reach further, so our dealer friends can help to reach a wider audience,” said Sophisticated.

[Gambas:Video CNBC]

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