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Astra Otoparts Takes Over Aspira in a Bid to Boost Revenue

Jakarta, October 11, 2000 -- Automotive component maker PT Astra Otoparts Tbk has taken over Aspira in a bid to boost revenue and control the lion’s share of the country’s autoparts business.

“As Indonesia’s leading alternative brand to genuine parts, Aspira is expected to contribute Rp 210.66 billion or 20.8% of AOP’s consolidated financial statement in second semester for the year 2000 alone,” Astra Otoparts President Director Budi S. Pranoto says.

Astra Otoparts has invested heavily in the acquisition of Aspira and is well-prepared to inject more money to develop the Aspira brand.

Astra Otoparts believes that not all vehicle owners are willing to spend more money on genuine parts. About 77% vehicle owners are using alternative parts while the remaining are using genuine parts. In order to fulfill consumer needs, Aspira offers equal quality with a high value alternative parts.

“We expect a 112% growth over the next five years with a minimum annual growth of 15%,” Pranoto says.

Pranoto says Astra Otoparts will sell 99% of the Aspira products on the local market. Within the next five years, the company plans to increase exports of motorcycle components.

Having held the greater share of domestic automotive component market for more than 20 years, Astra Otoparts now enjoys a strong presence in the ASEAN region as well as in other markets thanks to its robust export performance.

Astra Otoparts also attributes its achievement to its extensive distribution network.

“This year alone, Aspira products will be sold through eighty-four dealers, fifty-nine suppliers, 2,627 stores for motorcycle and 600 stores for automobile across the country. This shows that Astra Otoparts is committed to giving our customers only the best quality alternative components,” Pranoto adds.

Using more than 81% of local content, Aspira products enable the company to sell reliable, quality products at an affordable price.

“Better still, fluctuation in the rupiah will not affect our pricing policy thanks to the low import content,” Pranoto adds.