The Most Prominent SUV Segment In Indonesia, Suzuki: Yes, But We Stay Competing In All Segments

Suzuki XL7 Hybrid. (Doc. Suzuki Indomobil Sales)

JAKARTA - The Sport Utility Vehicle (SUV) market is the best-selling segment globally also included in the Indonesian automotive market. Therefore, several manufacturers are competing to introduce this utility vehicle to meet consumer needs.

During 2023, PT Suzuki Indomobil Sales (SIS) managed to record retail sales of 37,853 units, with SUVs dominating 58 percent, LMPV contributing 25 percent, minibuses 9 percent, and hatchback 7 percent. However, does this single agent holding the brand (ATPM) only focus on one segment?

Harold Donnel, who serves as PT SIS' 4W Marketing Director, stated that it is undeniable that SUVs currently make a major contribution to markets, apart from LMPV and LCGC.

"When viewed from the contribution of the market in Indonesia, the three largest contributors in the automotive segment, regardless of commercial vehicles, are SUVs with 26 percent, while LMPV and LCGC range from 15 percent. Meanwhile, commercial vehicles are around 9 percent," said Harold in response to VOI questions on Tuesday, January 23.

Despite this, he stressed that the company will explore any possibilities to expand and add models in various segments, considering that Suzuki vehicles are aimed at the general public.

"We, in Suzuki, are committed to the wider community, and we are trying not to only focus on one segment. We feel a moral obligation to present vehicles in every segment in the country," added Harold.

As a result of sales in December 2023, Suzuki's passenger vehicle retail sales increased by 25 percent, while commercial sales rose by 26 percent. The increase in sales in passenger categories was dominated by XL7, which recorded a 32% increase in sales compared to the previous month.

Suzuki XL7 is a competing model in the Low Sport Utility Vehicle (LSUV) segment and has its own advantages. The New XL7 Hybrid variant with Smart Hybrid Vehicle by Suzuki (SHVS) technology also increases fuel efficiency and driving convenience.