Due to the warm response of the market for the new LCGC vehicles, Astra International's market share in Indonesia's automotive market has grown to 54 percent (from 50 percent in 2015).

Jongkie Sugiarto, Chairman of the Indonesian Automotive Industry Association (Gaikindo), informed that car sales in Indonesia are much better this year compared to 2015 and therefore he is optimistic that Gaikindo's 2016 target can be achieved. In full-year 2016, Gaikindo targets to see Indonesian car sales rise by 5 percent year-on-year (y/y) to 1.05 million vehicles.

He mentioned that there are three factors that push Indonesia's car sales higher this year. Firstly, the macroeconomic environment of Indonesia has improved. In 2015 gross domestic product (GDP) of Indonesia expanded 4.7 percent (y/y). This year domestic and international institutions see Indonesia's GDP growing in the range of 4.9 - 5.1 percent, effectively ending the economic slowdown that occurred in the years 2011-2015. Higher economic growth boosts people's purchasing power and therefore demand for cars is rising.

Secondly, Gaikindo has been enthusiastically organizing car shows in Jakarta, Surabaya and Makassar this year, hence attracting more car buyers, particularly men. Lastly, new LCGC vehicles - launched this year - have boosted car sales in Southeast Asia's largest economy. The LCGC are affordable and fuel efficient cars that were introduced to the Indonesian market in late-2013 after the central government offered tax incentives to those car manufacturers that meet the requirements regarding fuel efficiency targets. Since the launch nearly three years ago, these LCGCs gained popularity in Indonesia's car market, currently accounting for nearly 20 percent of total Indonesian car sales.

Read more: Overview of Indonesia's Automotive Industry

The multipurpose vehicle (MPV) and sport utility vehicle (SUV) are - by far - the most popular vehicle types in Indonesia as they can carry up to seven passengers. These car types make it easier for families to go traveling together.

In September 2016 a total of 92,000 cars were sold in Indonesia, down 0.5 percent compared to car sales in the same month last year, according to the latest data from Gaikindo.

Indonesian Car Sales (CBU):

 Month    Sold Cars
      2012
   Sold Cars
      2013
   Sold Cars
      2014
   Sold Cars
      2015
   Sold Cars
      2016
 January      76,427      96,718     103,609      94,194      85,003
 February      86,486     103,278     111,824      88,740      88,208
 March      87,917      95,996     113,067      99,410      94,093
 April      87,144     102,257     106,124      81,600      84,771
 May      95,541      99,697      96,872      79,375      88,578
 June     101,746     104,268     110,614      82,172      91,492
 July     102,511     112,178      91,334      55,615      62,603
 August      76,445      77,964      96,652      90,537      96,294
 September     102,100     115,974     102,572      93,038    ±92,000
 October     106,754     112,039     105,222      88,408
 November     103,703     111,841      91,327      86,938
 December      89,456      97,706      78,802      73,264
 Total    1,116,230
   1,229,916
   1,208,019    1,013,291

 

     2008    2009    2010    2011     2012     2013     2014     2015
Car Sales
(car units)
 607,805  486,061  764,710  894,164 1,116,230
1,229,916 1,208,019 1,013,291
Car Exports
(car units)
 100,982   56,669   85,769  107,932  173,368  170,907  202,273  207,691

Source: Gaikindo

Can Indonesia surpass Thailand as biggest SEA car hub in next five years?

Voting possible:  -

Results

  • Yes, but more incentives from government are needed to attract investment (60.3%)
  • Yes, it will not even require additional efforts, it just needs time (17.6%)
  • No, Thailand's automotive industry is too strong (17.6%)
  • I don't know (4.4%)

Total amount of votes: 68

-

Bahas