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Tuesday, September 1, 2009

PT Honda Prospect Motor Gears Up for Honda Freed Export Operations




The Jakarta Post reported that PT Honda Prospect Motor (HPM) will be expanding its production capacity for the Honda Freed, the sole MPV model distributed by HPM, in a bid to gear itself up for export operations, rumoured to be to Thailand and Malaysia. HPM will expand the Freed's annual production capacity from the current 50,000 units to 60,000 units. At the moment, there is a 3 month waiting list for the Freed in Indonesia.

HPM's plant in Karawang, West Java in Indonesia is currently the sold production hub for the Freed in South East Asia. The first Freed export operation have already started in August, to low volume markets like Singapore and Brunei. Export to Thailand will commence by November 2009 while Malaysia is still uncertain, but is rumoured to be in early 2010.




Images from Kah Motor Singapore catalogue.

The Freed is generally available across all regional markets in two trims - a base model with standard equipments to include electronic driver assistance features like ABS+EBD with BA, i-Pod and MP3 compatible audio, reclining and sliding 2nd row seats, 10-cup holders, two-tone interior and a so-called "king and queen" front row seat (whatever that means). The high range model will include automatic climate control, dual front airbags, Honda's G-CON and ACE high strength body, powered sliding doors (with remote control), driver's arm rest, LED wing mirror indicators, chrome exterior trim, captain seats for the second row allowing a walk through passage to the rear most third row, intermittent wipers and seatbelt pretensioners(can't believe the last 2 basic items are not available as standard). Take note this is a "general trim level." Actual specifications may vary from market to market. Surprisingly, there isn't much noticable "downgrading" (based on the pictures at least) of interior trim quality between those sold in developing markets and those in Honda's domestic market in Japan. But the South East Asian Freed is reportedly to have a slightly higher ground clearance from its Japanese market equivalents. Due to constant threats of floods and poor road conditions, having a high ground clearance is a prerequisite for any mainstream MPVs sold in Indonesia.

In Indonesia, the Freed starts at Rp 237,000. About 40% higher than a top range Toyota Avanza 1.5S. In Singapore, it sells for SGD 84,800. In Thailand, the estimated price is expected to be around B900,000. If the Freed does made it to Malaysia, expect a price tag within the range of RM100,000 plus upwards. Due to its higher price and a more premium image, the Freed is not a real competitor to the Avanza or Nissan's Grand Livina. It actually takes off from where Nissan left when it discontinued its Serena. At the moment, ignoring the slow selling Naza Ria (Kia Carnival) there aren't any MPV model within the RM100k plus to RM140k price range. The market is now somewhat filled by decade old grey imported Toyota Estimas. But many are put off by both the Estima and Naza Ria due to its large size and high running cost (higher engine capacity). In the case of the Naza Ria, it is also related to perceived quality. Since the Freed is powered by a fuel efficient 1.5-litre engine found in the City and Jazz, and backed with manufacturer warranty (no more dodgy grey imported vehicle documentations and service history) and Honda's famed high quality, it should stand a good chance.

The Freed's name is derived from the word "Free" and "Do." Japanese cars always have very unusual sounding names. Back in Indonesia, the largest MPV market in South East Asia, the Freed is still far from challenging Toyota's all conquering Avanza and Innova Kijang, the whole country is basically run over by these two models. But consumers in urban Thailand and Malaysia have a higher expectation and are keen to have a more premium passenger car based MPV. It will be interesting to see the market's response. Interestingly, Honda calls the Freed a MUV (multi-utility vehicle) rather than a MPV. Not sure what defines a MUV (sliding door?).

Related link :
Honda Freed to be launched in Indonesia
Asian Honda Motor Planning an Avanza-Innova Killer?

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