Car Sales Update Indonesia: Car Production Capacity Expanding


Cumulatively, Indonesian car sales (wholesales) reached 932,000 units in the first nine months of 2014 according to data from the Indonesian Automotive Industry Association (Gaikindo). This is a three percentage point increase from the same period last year (908,000 units). Retail sales grew only 1 percent to 893,000 units over the same period.

In the past two months (July and August 2014) car sales in Indonesia were negatively influenced by several Islamic celebrations (Ramadan and Idul Fitri) resulting in fewer working days and limited distribution channels.

Besides the absence of holidays, September 2014 car sales were also supported by the successful Indonesia International Motor Show (IIMS) 2014 event which was held last month.

Gaikindo official Jongkie Sugiarto said that he is optimistic about car sales in the remainder of the year. Gaikindo targets for 1.25 million sold vehicles in full-year 2014. However, several challenges that have to be faced by the industry this year are the slowing economy, a looming fuel price hike before the year-end (causing accelerated inflation and thereby reducing people’s purchasing power), higher minimum wages, and a depreciating rupiah exchange rate (resulting in more expensive imported car components and thus higher car prices).

Meanwhile, Indonesian car production capacity is expected to expand from 1.36 million units per year at end-2013 to 1.9 million units at the end of this year as several car manufacturers have invested in production facilities.

Toyota, sold on the domestic market by Astra International, remains the market leader, commanding a 34 percent market share.


Indonesian Car Sales (CBU):

 Month    Sold Cars 2012    Sold Cars 2013    Sold Cars 2014
 January           76,427           96,718          103,565
 February           86,486          103,279          111,862
 March           87,917           95,996          113,096
 April           87,144          102,257          106,056
 May           95,541           99,697           97,136
 June          101,746          104,268          110,560
 July          102,511          112,178           91,395
 August           76,445           77,964           96,728
 September          102,100          115,973          101,801
 October          106,754          112,039  
 November          103,703          111,841  
 December           89,456           97,694  
 Total         1,116,230
        1,229,904
         932,199


     2008    2009    2010    2011     2012     2013     2014¹
Indonesian Car Sales
(number of car units)
 607,805  486,061  764,710  894,164 1,116,230
1,229,904 1,250,000
Indonesian Exports
(number of car units)
 100,982   56,669   85,769  107,932  173,368  170,907  200,000

¹ Gaikindo forecast
Source: Gaikindo

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