Growing middle class finds vehicle of choice

Mercedes-Benz Indonesia's knowledge of the local market has allowed the company to meet the needs of rapidly developing customer demographics in the Indonesian vehicle industry.

To address the requirements of Indonesia's rising upper-middle class, Mercedes-Benz Indonesia launched a second generation B-Class family car. This premium vehicle is small enough for the city but large enough to fit five passengers comfortably.

"We have noticed growth in the demand from young families seeking transport for more than three to four passengers. While standard sedans still make up the majority of our sales, new customers are looking for smaller cars," says Dr Claus Weidner, president and CEO of Mercedes-Benz Indonesia. "We will continue product differentiation in niche segments such as coupes and cabriolets. We're going in new directions and creating new demands."

The luxury carmaker has been in Indonesia for 40 years and has developed a vast distribution network and a workforce of nearly 700 predominantly Indonesian employees. It operates several manufacturing plants, one of which is the longest-standing local vehicle factory.

It sees prospects in growing industries such as mining and transport. The company is building a presence for heavy-duty trucks in Kalimantan and Sumatra to address the special transport needs of mining companies in the area. It has also tapped opportunities in the booming local travel sector by supplying transport companies with high-quality coaches.

Moving towards its vision of localising the production of vehicles, Mercedes-Benz Indonesia will continue to invest and strengthen its presence in the local market.