Hino grows with nation

After a quarter of a century in Indonesia, the Hino Motors operation there has become a key component in the multinational's global production network.

"When the company started its Indonesian operations in 1982, Hino was not at all known in the country. But once we introduced our trucks and buses to prospective customers, Indonesians generally saw that Hino's quality was superior. Sometimes, the company would send its trucks to industrial yards and ask people to just start trying them out," recalled Toshiro Mizutani, CEO of Hino Motors Sales Indonesia.

As a local partner, Indomobil helped Hino acquire a vast network of dealerships.

Together, Hino's sales and manufacturing companies (the latter use 30 percent locally produced components) have worked with their local partners to give it a market share of more than 50 percent in medium-duty trucks and more than 70 per cent in buses.

In its 25 years in Indonesia, Hino has experienced economic highs and lows, the most recent being the spike in gasoline prices in 2005 following the government's decision to cut fuel subsidies.

"That marked the start of a difficult period," said Mizutani, who recalls that total automobile sales (including trucks and buses) fell from 543,000 in 2005 to 320,000 in 2006.

But those difficulties may already be a thing of the past.

"Government measures have helped produce a recovery in a relatively short time. Interest rates have been reduced for the ninth consecutive month and the people in general are more confident. More of our products are being bought as confidence has returned. The government has also increased spending on construction and infrastructure," explained Mizutani.

Hino also has plans to expand its production plant for light-duty buses and trucks in West Java.

In what will be a pioneering step in the country, the factory will also build chassis frames for buses that will run on environment-friendly compressed natural gas (CNG).

Its biggest markets for truck and bus parts, including chassis frames, are China's Taiwan Province, Thailand, Malaysia and Pakistan, while its largest market for trucks and buses is Thailand, followed by Australia and Indonesia.

Last January, it launched its latest truck and bus models in Indonesia, all of which comply with the strict emission standards set by the European Union.

www.hino.co.id

(China Daily 08/17/2007 page19)