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Today's Headlines LCGC

  • Automotive Sector Indonesia: Car Sales Continue to Expand

    Car sales in Indonesia in May 2017 were in line with expectations. The Indonesian Automotive Industry Association (Gaikindo) said car sales in the month prior to Idul Fitri (the celebrations that mark the end of the Ramadan month) always tend to show a modest rise every year, specifically passenger cars.

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  • Automotive Industry: Indonesia's Car Market Accelerates in Q1-2017

    The production of cars in Indonesia rose 11.97 percent year-on-year (y/y) to 319,241 units in the first quarter of 2017, a significant increase that indicates the economy is improving. Meanwhile, local manufacturers are convinced the low cost green car vehicle will continue to boost sales and strengthen the competitiveness of Indonesia's automotive industry.

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  • Automotive Sector Indonesia: Car Sales on Schedule in February

    In February 2017 domestic car sales in Indonesia rose 9.6 percent year-on-year (y/y) to 96,722 vehicles (from 88,208 sold vehicles in the same month one year ago), supported by the popularity of the Astra Toyota Calya and Astra Daihatsu Sigra (both are low-cost green cars) as well as strengthening purchasing power in the regions outside Java due to rising commodity prices. Also in the first month of 2017 Indonesian car sales grew on an annual basis, implying there rises optimism about Indonesia's automotive sector after having experienced two bleak years.

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  • Low Cost Green Car Boosts Indonesia's 2016 Car Sales

    Car sales in Indonesia grew 2.4 percent to around 783,000 vehicles in the first nine months of 2016 from 764,000 units sold in the same period one year earlier. Improving car sales this year are attributed to the launch of new low cost green car (LCGC) models - including the Toyota Calya and Daihatsu Sigra - at the Gaikindo Indonesia International Auto Show 2016, held between 11-21 August 2016 near Jakarta. Demand for both models, distributed by the Astra Group, is high, reflected by the two-month waiting list.

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  • Low Cost Green Car to Boost Indonesia's 2016 Car Sales

    Sales of low cost green cars (LCGCs) are estimated to boom in Indonesia this year, supported by the launch of the Toyota Calya and Daihatsu Sigra. These multi-purpose vehicles are expected to become popular on the Indonesian market as they are relatively cheap (in the range of IDR 110 - 150 million) and have a maximum passenger capacity of seven people. According to analysts the LCGC will control 20 percent of Indonesia's car sales market before the year-end. Especially, first-time car buyers show a preference for the LCGC.

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  • Indonesia's Low Cost Green Car Not as Affordable as Planned

    The selling price of Indonesia's low cost green car (LCGC) has become more and more expensive. Initially, this type of car was launched on the Indonesian market in order to offer the people an affordable and relatively environment friendly car. However, rising selling prices of the LCGC and weaker purchasing power amid Indonesia's slowing economic growth trend that occurred since 2011 has made it harder for Indonesia's middle class to purchase a LCGC.

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  • Car Sales Indonesia 2015: Declining amid Slowing Economic Growth

    The Indonesian Automotive Manufacturers Association (Gaikindo) lowered its car sales target for 2015 to 1.1 million vehicles, down from its original sales target of 1.2 million vehicles, due to persistent slowing economic growth in Indonesia (curbing consumer demand). On Tuesday (05/05), Statistics Indonesia announced that the country’s economic growth slowed to 4.71 percent (y/y) in the first quarter of 2015, a five-year low. Other important factors that negatively influence car sales are inflation, the interest rate, the rupiah, and fuel prices.

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  • Car Sales Industry Indonesia - What are the Forecasts for 2015?

    Based on preliminary data, domestic car sales in Indonesia fell 7.2 percent (y/y) to 96,149 vehicles in January 2015 from the same month in 2014. It is believed that the recent (subsidized) fuel price reforms, implemented by the Joko Widodo administration in November and January (which led to accelerated inflation), have made consumers hesitant to buy a car. Car sales are an important indicator to measure consumer confidence and the general state of the economy. In general, when car sales rise the economy is growing.

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  • Low Cost Green Cars Support Car Sales in Indonesia

    Domestic sales of low-cost green cars (LCGCs) in Indonesia may exceed the level of 200,000 units in 2015, a 14 percentage point growth from an estimated 175,000 sold LCGC units this year. Amid slowing domestic car sales (a consequence of the country’s slowing economic growth and tighter monetary policy), popularity of the recently introduced LCGC has managed to support total car sales in Southeast Asia’s largest economy. In the first ten months of 2014, a total of 1.04 million cars were sold, up 1.72 percent from the same period last year.

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  • Gaikindo: Ahead of Lebaran, Indonesian Car Sales Grow 13% in June 2014

    According to data from the Indonesian Automotive Industry Association (Gaikindo), domestic car sales in Indonesia rose 13 percent to 109,706 car units in June 2014 from the previous month (97,147 vehicles) as people increased car purchases ahead of the Idul Fitri (Lebaran) festivities, which commence after the holy fasting month of Ramadan has ended on 28 July. Idul Fitri involves the exodus of millions of Indonesians from the cities to their places of origin. Ahead of this celebration, car sales always increase.

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Latest Columns LCGC

  • Automotive Market Indonesia: Car Sales to Rebound in 2016

    Indonesian car sales may rise up to ten percent (y/y) to 1.1 million vehicles in 2016, from an estimated 1 million this year, amid accelerating economic growth in Indonesia. Car sales in 2015 have been disappointing, declining 18 percent (y/y) to 853,008 units in the first ten months of 2015, due to people's weakening purchasing power. Sales in 2016 are expected to be boosted by sales of the low-cost green car (LCGC), which was introduced on the Indonesian market in late-2013, and the crossover utility vehicle, a car that has gained popularity recently.

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  • What about Indonesian Car Sales in 2015? Analyst Opinion

    Global consulting firm Frost & Sullivan expects Indonesian car sales to grow five percent year-on-year (y/y) to 1.28 million vehicles in 2015, particularly on the rising popularity of the low cost green car (LCGC) and the USA-based company’s assumption that the economy of Indonesia will expand by 5.5 percent (y/y) this year. The LCGC was introduced on the Indonesian market in late 2013 after the government had offered tax incentives to car manufacturers that met requirements of fuel efficiency targets.

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  • Growth of Indonesian Car Sales Falls amid Slowing Economic Expansion

    Amid Indonesia’s slowing economic growth as well as looming higher prices of subsidized fuels (which will cause accelerated inflation and declining purchasing power), domestic car sales in Indonesia have fallen 6.3 percent to 104,916 units in October 2014 from the same month last year according to preliminary data from the Indonesian Automotive Industry Association (Gaikindo). Cumulatively, car sales reached 1.04 million units in the first ten months of 2014, a slight 1.6 percentage point increase from the same period last year.

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  • Impact of Higher Subsidized Fuel Prices on Indonesia’s Car Industry

    After Indonesian President Joko Widodo and Vice President Jusuf Kalla have confirmed that prices of subsidized fuels (gasoline and diesel) will be raised in November 2014 in an attempt to ease the country’s wide current account deficit and government budget deficit (which are primarily caused by costly oil imports), domestic car manufacturers and dealers are expected to post declining earnings in 2015. Besides the subsidized fuel price issue, Indonesia’s car industry is also negatively impacted by the country’s slowing economic growth.

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  • Update Indonesian Car Industry: Car Sales Declined 8% in May 2014

    Car sales in Indonesia declined 8 percent to 98,198 units in May 2014 from 106,811 units in the previous month. The Indonesian Automotive Industry Association (Gaikindo) said that the decline was the direct consequence of several public holidays (International Labour Day and the commemorations of Buddha’s birthday as well as ascensions of Prophet Muhammad and Jesus Christ). These holidays caused a lower car production rate and a reduced number of car deliveries to wholesale dealers.

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  • Indonesia Economic Update & Analysis: Opportunities Arise?

    It seems clear now how market conditions will be until the end of the year. Two important foreign issues - the US Federal Reserve's tapering of quantitative easing (QE3) as well as the US debt ceiling issue which resulted in a shutdown as the Democrats and Republicans failed to come to an agreement on the country's federal budget - and various economic data from Indonesia (inflation and the trade balance) have provided some more insight into the matter. I will discuss each topic one by one below.

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