Reportedly Desperate To Fulfill Demand Due To Free Taxes, Mitsubishi Ensures Xpander Production Is Still Safe

Mitsubishi Xpander. (Photo: By courtesy)

JAKARTA - PT Mitsubishi Motors Krama Yudha Sales Indonesia (MMKSI) confirmed that domestic Xpander production is still able to meet market demand which has jumped significantly after the implementation of the relaxation of the Sales Tax on Luxury Goods (PPnBM) of 0 percent.

The Department Head of PR and CSR Development Division of MMKSI, Aditya Wardani, said that so far his party is still carrying out production activities as usual and there have not been any extraordinary efforts related to increasing demand.

"So far, it can still be fulfilled with the existing stock, so there has not been any additional production yet", he told VOI, Tuesday, March 16.

Aditya added that the 0 percent PPnBM imposed on Mitsubishi Xpander products is considered to have greatly affected sales figures, especially in the last two weeks since the implementation of March 1.

"If the count from the beginning of March, the sales will be good if you look at the numbers based on the dealer", he said.

Separately, MMKSI Marketing Director Irwan Kuncoro said that his party had found an increase in the number of orders after the incentive was released, especially two products that received PPnBM incentives, namely Xpander and Xpander Cross.

"The number of SPK in the first week of March 2021 has increased quite significantly for Xpander, when compared to the same period in February 2021", he said as quoted from the website of the Ministry of Industry last week.

To note, the Mitsubishi Xpander which is marketed in Indonesia is the product of a factory located in Cikarang, West Java. The facility was inaugurated on April 25, 2017 with an investment value of IDR .8.9 trillion.

When it started operating, the factory had a production capacity of 160,000 units per year. Today, Mitsubishi is increasing its capacity to 220,000 units per year.

Based on data released by the Association of Indonesian Automotive Industries (GAIKINDO), Mitsubishi Indonesia's total production for the first semester of 2020 reached 36,753 units.

Of that number, 28,897 units were Xpander production, 6,274 units Xpander Cross, and 1,582 units Nissan Livina.

For information, Xpander is the strongest challenger to the market leader Toyota Avanza. It is stated that Xpander's wholesale sales in 2017 were recorded at 11,890 units.

This figure jumped 84.1 percent in 2018 to 75,075 units which made the Xpander the second best-selling model after the Toyota Avanza.