BMW Urges Consumers Not to Delay Purchases Due to IEU-CEPA

KatadataOTO – BMW, the German premium car manufacturer, welcomes the IEU-CEPA agreement approved by the Indonesian government some time ago.

In the agreement, there is a regulation that discusses the reduction of import duties for European cars imported into Indonesia.

As a result, a number of premium brands have indicated that there is a chance consumers might delay their purchases while awaiting the implementation of this policy.

Facing this situation, BMW asserts that their current vehicle lineup is offered at competitive prices in its segment, even without benefiting from the IEU-CEPA regulation.

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“So if we talk about that, actually (consumers) don't need to wait for IEU-CEPA,” said Jodie O’tania, Director of Communications for BMW Group Indonesia in Jakarta, Wednesday (03/12).

She emphasized that, overall, 80 percent of the models offered by BMW enter Indonesia under the Completely Knocked Down (CKD) scheme. 

Therefore, their price tags are different from units that are still Completely Built Up (CBU) or imported whole from their country of origin.

“From BMW's perspective, if you want to own a BMW vehicle, now is the right time,” said Jodie.

However, she did not deny that there would be a positive impact for BMW if the agreement on reducing import duties for imported cars under IEU-CEPA is implemented.

This means that BMW's CBU car lineup has the potential to be sold at even more competitive prices thanks to IEU-CEPA.

To date, the exact implementation and direct impact of IEU-CEPA on the prices of imported German cars in Indonesia are not yet known.

“We certainly see this as a positive thing, especially for the premium automotive industry in Indonesia,” said Jodie.

For your information, several BMW models are already locally assembled, such as the 2 Series, 3 Series, 5 Series, X1, X5, X7, and the BMW 2 Series Gran Coupe Sport.

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In total, there are nine models under the BMW Group, including Mini, that are already assembled at the Gaya Motor facility in Sunter.

BMW has also not ruled out the possibility of locally assembling their electric car lineup in Indonesia. However, they have not yet been able to confirm the timing.

BMW has several pure electric car models sold to Indonesian consumers, such as the BMW iX, iX1, i4, and i7.

“We will see what the future holds. It will definitely happen, just wait and see,” Jodie said on a separate occasion.