Automotive Industry Indonesia: Good Car Sales Growth in January 2018
Indonesia's car sales rose 11.1 percent year-on-year (y/y) to 95,892 vehicles (wholesale) in January 2018 according to the latest data from the Association of Indonesian Automotive Industries (Gaikindo). This is a very promising start of the year as the January 2018 car sales figure is the highest January figure since 2014.
Two reasons were cited to explain good car sales growth in Indonesia in the first month of 2018: the country's improving macroeconomic conditions (with accelerating gross domestic product growth) and the various new car models that were launched on the Indonesian market in recent months by several key car brands, such as Mitsubishi's Xpander or Wuling's Confero and Cortez.
Kyoya Kondo, President Director of Mitsubishi Motors Krama Yudha Sales Indonesia, said the Xpander, a low multipurpose vehicle (LMV), proved popular among the Indonesian consumer, hence the company is eager to boost production of the vehicle at its local plant from 6,000 units per month in January 2018 to 11,000 units per month in the foreseeable future. The Xpander, which was launched on the Indonesia market in August 2017, has already been ordered 55,000 times (although actual delivery to the consumer only reached 11,890 per December 2017).
The Xpander is manufactured in Mitsubishi's Cikarang plant (in West Java) that was opened in April 2017. In full-year 2017 the company targets to sell 70,000 Xpander vehicles in Indonesia.
Indonesian Car Sales (CBU):