Update COVID-19 in Indonesia: 365,240 confirmed infections, 12,617 deaths (19 October 2020)
19 October 2020 (closed)
USD/IDR (14,738) +41.00 +0.28%
EUR/IDR (17,395) -10.41 -0.06%
Jakarta Composite Index (5,126.33) +22.92 +0.45%
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.
The most popular car in Indonesia remains the Toyota Avanza (a multipurpose vehicle, or MPV). In February 2017 a total of 12,600 Toyota Astra vehicles were sold in Southeast Asia's largest economy. This is no surprise as this vehicle has been the favorite for many years. However, the second-most popular car is now a so-called low cost green car (LCGC). This is a new phenomenon. In the second month of the year a total of 9,870 Astra Toyota Calya vehicles were sold, showing the rising popularity of the LCGC. In the remainder of the year this car type is expected to remain a "consumer darling".
The LCGC is an affordable, fuel efficient car that was introduced to the Indonesian market in late-2013 after the government had offered tax incentives to car manufacturers that meet requirements of fuel efficiency targets. These LCGC cars generally have a price tag of around IDR 120 million (approx. USD $9,000), hence attractive for the country's large (lower) middle class segment.
Based on data from the Indonesian Automotive Industry Association (Gaikindo), a total of 183,323 cars were sold in Indonesia in the January-February 2017 period, up 5.7 percent (y/y) from car sales in the same period one year earlier. This figure is in line with our outlook for full-year 2017 car sales in Indonesia. We expect to see a 5 percent (y/y) growth to approximately 1.1 million vehicles by the end of the year. Strengthening commodity prices, accelerating macroeconomic growth, low inflation, growing infrastructure development, and the stable rupiah exchange rate are all reason to expect improving car sales in Indonesia this year.
Meanwhile, Toyota remains the clear market leader with 70,345 sold units in the first two months of the year, followed by Daihatsu (33,581), Honda (33,180), Mitsubishi (17,051), and Suzuki (15,456).
Indonesian Car Sales (CBU):