Guesstimating Indonesia Honda Freed Price

Okay, since I have a lot of unapproved messages and readers asking about the new Honda Freed price in Indonesia, I’m going to one up Honda Indonesia and try to guess the Freed price. Frankly, I didn’t know the price, I have contacts in the “inner circle” but not that kind of inner circle, just friends at the dealership and media, so my best info will be your best info from local auto magazines.

I don’t know much how Honda Indonesia established their product price, but it is safe to assume that the Freed will be priced around Jazz price. Why? Because:

  1. Honda Jazz and Honda Freed are both locally assembled.
  2. Honda Freed is basically a stretch Jazz.
  3. Both car shares the same engine and transmission.

The most expensive Honda Jazz, the RS, is priced at Rp. 221,5 Million. Now taking into account that the Freed is basically a stretched Jazz, the Freed shares most of its inner working with Jazz such as engine, transmission, and even suspension. The latter might be modified to handle Freed extra weight, but it is still the same McPherson Strut front and H-Shaped torsion beam back. So the changes might be just a different absorber and spring size.

So, the extra cost for Honda mostly comes in the form of sheet metal, plastics, and window, given as the Freed is bigger than the Jazz. Also for the automatic sliding door mechanism…

Do mind that Honda Indonesia only assemble the cars here, that’s why we call it CKD (completely knock down). So a lot of contents are still imported. Remember the basic economic equation of orders? When you buy something from period A, you sell it with period A price + margin. So if Honda purchases Freed components then when the dollar is at its highest, it’s not their fault… It’s the forex speculant’s.

So how much do you think the Freed will be priced? Personally, I guess the price will start at Rp. 240 Million, and topping out at Rp. 260 Million. This is actually a very conservative guess because even at Rp. 240 Million, Honda will sell a ton of this car. Because with just a premium of 8% from Jazz RS, you got a bigger capacity car and I see LOTS of Jazz RS running around Indonesia capital.

Why a conservative guess again? Because of the competition. At Rp. 240 Million Indonesian can just buy Toyota Innova, the venerable car of choice in Indonesia; 8 seater, 2L engine, enormous utility, high ground clearance. Then at Rp. 270 Million you can buy yourself an entry level Nissan Serena; 7 seater, 2L engine, bigger than Freed,  same exquisite FF platform. So, Honda Indonesia needs to play its card right. Thankfully, Honda brand equity in Indonesia warrant a price premium, although not much… Pricing the Freed over Nissan Serena level will be suicide, and Honda Indonesia should know better. So that’s why I personally guess the price will not go over Rp. 270 Million.

For trim level I’m guessing that Indonesian Freed will have two trims. The standard and top of the line. With automatic as standard, and the top of the line model featuring automatic sliding doors. The seating capacity will be strictly 7 seater captain seat variant.

With the economy is still in the red and buying capability of the market still low, it’s best for Honda to aim for the top with the Freed. 7 seater cars are synonimous with luxury people movers such as Honda Elysion, Toyota Alphard and Nissan Elgrand. With Freed’s premium pricing strategy, it’s best for Honda Indonesia to target a specific market than to cater to wider demographics.

But still, these are just plain guessing. I’m not affiiliated whatsoever with Honda Indonesia. So, the car is on track to its release date and the car is already booked in many dealers, have you booked yours today?

3 thoughts on “Guesstimating Indonesia Honda Freed Price

  1. Wow. Expensive for 1500cc car. Need to see the car first before making future judgement. Any word for test drive car?

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