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Berita Hari Ini Gaikindo
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.
Indonesian exports of completely built up (CBU) car units surged in the first quarter of 2017, a development that may indicate that global economic growth is improving (specifically in the export destination nations). Based on data from the Indonesian Automotive Industry Association (Gaikindo) Indonesia exported 56,371 units in Q1-2017, up 53.4 percent year-on-year (y/y) from 36,750 units in the same period one year earlier.
The declining trend of city car sales continues in Indonesia. In the first two months of 2017 sales of city cars fell 41.8 percent to 2,511 units on a year-on-year (y/y) basis. This is not a new phenomenon. Ever since the low cost green car (LCGC) was introduced to the Indonesian market in late-2013, city car sales have been on the decline. In full-year 2016 city car sales had fallen 38.4 percent (y/y). A city car is a small car designed to be used primarily in (con)urban areas.
Indonesia's car sales rose 3.7 percent year-on-year (y/y) to 974,972 vehicles in the first 11 months of 2016, improving from 940,027 sold vehicles in the same period one year ago. Jongkie Sugiarto, Chairman of the Indonesian Automotive Industry Association (Gaikindo), said this year's rising car sales in Indonesia are primarily supported by the launch of various new vehicles. He added Gaikindo's 2016 car sales target of 1.05 million could still be achieved, provided December's car sales will be more than 75,000 units.
Car sales in Indonesia rose 4 percent year-on-year (y/y) to 91,846 units in October 2016 compared to 88,408 vehicles in the same month one year earlier. Growth is attributed to the stabilizing economy of Indonesia and the launch of several new car models (that managed to entice consumers). New data from the Indonesian Automotive Industry Association (Gaikindo) show that Indonesia's car sales totaled 874,703 units in the first ten months of 2016, up 2.5 percent (y/y) from 853,089 cars in the same period one year ago.
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.
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.
Domestic car sales in Indonesia (wholesales; from factories to dealers) surged 11 percent (y/y) to 87,919 vehicles in May 2016, the second straight month of rising car sales (on a year-on-year basis). However, Jongkie Sugiarto, Chairman of the Indonesian Automotive Industry Association (Gaikindo), reminded stakeholders not to become too enthusiastic as the rise in Indonesia's May car sales was caused by technical factors, rather than fundamental ones. Last month, the nation's car manufacturers began to deliver new models to dealers ahead of the Idul Fitri holiday.
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.
Domestic car sales in Indonesia are expected to rebound in the second half of 2016 in line with Indonesia's improving macro-economy. Jongkie Sugiarto, Chairman of the Indonesian Automotive Industry Association (Gaikindo), is optimistic that the small drop in Indonesia's February car sales is a sign that the sales decline is stabilizing. In February 2016 a total of 88,250 cars were sold in Indonesia, down 0.6 percent (y/y) from car sales in the same month one year earlier. Fitch Ratings also expects Indonesian car sales to rebound this year.
Artikel Terbaru Gaikindo
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.
In 2014, Indonesia is expected to see capital inflow of between USD $1 billion and USD $1.5 billion of funds for investments in the country's car components industry. About 20 to 30 companies are eager to expand or start business in this sector of Southeast Asia's largest economy (each investing about USD $50 million). Indonesia's car industry is attractive due to record high car sales in recent years (triggered by strong domestic GDP per capita growth) as well as double-digit export growth (although coming from a low base).
Indonesian car sales have already exceeded the one million mark in October 2013. In the January-October period, 1,018,786 car units were sold, a ten percent increase compared to car sales in the same period last year. Growing demand for cars in Indonesia indicates that this sector of Southeast Asia's largest economy is not influenced by current negative market sentiments, such as the sharply depreciated Indonesian rupiah exchange rate (against the US dollar), high inflation (8.32 percent yoy in October 2013), and slowing economic growth.
Car sales in Indonesia are expected to exceed the target set by the Indonesian Automotive Industry Association (Gaikindo) in 2013. The institution originally set a target of 1.1 million sold car vehicles in 2013, which is similar to the sales result in 2012. However, in September 2013 car sales recorded a new monthly record (115,921 sold units) after consumers sped up car sales as prices will increase in October. Up to the third quarter of 2013, total car sales have increased 11.2 percent compared to the same period last year.
In mid-September 2013, South Korean tire producer Hankook Tire, conducted the inauguration of its tire plant in Indonesia. The factory is located in Cikarang (West Java) and is the company's seventh production center in the world: two plants in Korea, three in China and one in Hungary. Annual production capacity of the two factories in Korea reached 46.1 million tires in 2013. Meanwhile, the three factories in China have an annual capacity of 30.8 million units each. In Hungary, annual capacity stands at 12.6 million tire units.
In recent years, Indonesia's car sales have shown robust growth, culminating in a record high number of 1.12 million sold car units in 2012. This is an important statistic because car sales inform us about the state of the economy. Generally, rising car sales indicate an expanding economy while declining car sales indicate that the economy is slowing down. When we take a look at the table below, there is a link visible between Indonesia's GDP growth and rising car sales, except for 2011 to 2012 when GDP growth declined while car sales rose.
Indonesian car sales in the first four months of 2013 continued its robust growth. Preliminary data from Agen Pemegang Merek (Brand Holder Agent or APM) indicates that from January to April of 2013 397,991 car units were sold in Indonesia, which constitutes a 17.75 percent increase compared to the first four months of 2012. Toyota retained its position as market leader with a market share of 35.9 percent. However, sales of Honda and Suzuki vehicles are growing fast in Indonesia.
