TOKYO, Sept 11 (Reuters) - Honda Motor Co will start selling its new small hatchback Brio Satya in November in Indonesia where it expects the vehicle to be certified by the government as a tax-exempt, low-cost green car.
Japanese carmakers including Honda are banking on Indonesia's long delayed Low Cost Green Car (LCGC) programme to boost sales. Under the plan, no luxury tax would be imposed on cars or station wagons with an engine displacement of up to 1,200ccs, or diesel or semi-diesel vehicles of up to 1,500ccs and with fuel consumption of 20 kilometres per litre or better.
Honda, the fifth-biggest carmaker in the fast-growing market, expects the government to certify its made-in-Indonesia, 1,200cc Brio Satya as an LCGC by the end of October, a spokesman said. The Brio Satya will have a starting price of 106 million rupiah ($9,400), Honda said on Wednesday.
This week, Toyota Motor Co and group company Daihatsu Motor Co, which together hold a 50 percent market share, became the first to obtain the LCGC certification with their compact cars - sister models called Toyota Agya and Daihatsu Ayla.
The Toyota group expects LCGC cars to account for 10 percent of Indonesia's total automobile demand. In 2012, Indonesian auto sales hit a record 1.1 million and some estimates show it could double over the next three years.
Honda, the biggest motorbike maker in Indonesia, holds a 7 percent share in the car market, lagging the Toyota group as well as Mitsubishi Motors Corp and Suzuki Motor Corp , which each hold around a 13 percent share.
Honda will open a new auto plant in Indonesia in 2014 and will more than double its annual car production capacity to 200,000 vehicles.
$1 = 11,235.00 Indonesian rupiah Reporting by Yoko Kubota; Editing by Matt Driskill