Mitra Pinasthika Mustika
Category: Best of the Best By : Ulisari Eslita Read : 918 Date : Friday, August 12, 2016 - 07:47:04


Ahmad Zamroni / Forbes Indonesia

Last year was a miserable year for the automotive industry, due to the economic slowdown. During the year, annual car and motorcycle sales dropped, respectively, by 16% and 17%. U.S. brands Ford and Harley-Davidson both shuttered their operations earlier this year. 

This gloomy environment is also impacting supporting industries, such as PT Mitra Pinasthika Mustika (MPM). As an automotive distribution company, MPM booked a thin margin of 1.8% last year, almost half of 3.2% in 2014. On the other hand, the company surprisingly enjoyed 4% revenue growth. “Last year was quite bad and this year the industry trend will remain the same: stagnating and even going down. We are hoping MPM could at least meet the same targets as we had last year,” says MPM Chief Executive Rudy Halim. 

Considering the automotive industry’s outlook continues to be poor this year, Rudy hopes MPM could at least outperform the overall industry. MPM’s first quarter performance seems to bear this out. It booked Rp 4.1 trillion of revenue, an increase 5% year on year.

During the first quarter of 2016, MPM sold 212 motorcycles, slightly lower than the first quarter of 2015 with 216 units. Meanwhile, four-wheel vehicle sales during the first quarter this year showed significant higher sales (up by 149%) and revenue (up 118%). The sales grew thanks to cost efficiencies, new product launches, and more aggressive sales promotions.      

Rudy says the second quarter sales number should be better and expects the following quarter will perform better due to the Idul Fitri holiday, when people spend more money compared to any other holiday. However, Rudy continued, MPM sales growth is also very reliant on the harvest output.

As an automotive distribution company, with distribution in East Java and East Nusa Tenggara, many MPM customers are farmers. “We are very dependent on commodity prices, harvest yields, as well as farmer income. For instance, if there is plenty of imported sugar in the market, we will be affected, as farmers’ purchasing power declines,” says Rudy. MPM controls 83% market share in East Java and has about 20% of national two-wheel vehicle sales.

In the four-wheel business, MPM started distribution in 2013 by securing the nationwide dealership for Nissan-Datsun and opened its first dealership in May 2014. Under MPM Auto, the four-wheel division has made a major contribution to the company by selling 3,680 cars last year, up 166% from 2014. MPM Auto dealerships are now in Jakarta, Tangerang, Bekasi, Cilacap, Surabaya, Tanjung Pinang and Bengkulu.



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