3 April 2020 (closed)
USD/IDR (16,464) -277.01 -1.65%
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Update COVID-19 in Indonesia: 2,092 confirmed infections, 191 deaths (4 April 2020)
In line with expectations and the general trend so far this year, Indonesian car sales fell 4.4 percent to 87,311 units in November 2015. In the January-November 2015 period, the country's total car sales reached 940,317 units, down 16.7 percent from car sales in the same period last year. The main cause of this weak performance is Indonesians' weakened purchasing power amid the country's economic slowdown, high inflation (in the first three quarters of the year), and low commodity prices.
Although Indonesian car sales in 2015 will fall below the target set by the Indonesian Automotive Industry Association (Gaikindo), the institution is optimistic that sales can surpass the level of one million units.
Besides weaker purchasing power, Gaikindo stated that two other factors impact on slowing car sales in Southeast Asia's largest economy. Firstly, the fragile rupiah rate ahead of monetary tightening in the USA. So far this year the rupiah has weakened 13.2 percent against the US dollar hence increasing costs for imports of car spare parts. Secondly - although the central bank eased down payment regulations for the purchase of a car - the interest rate environment remains relatively high with the benchmark interest rate at 7.50 percent, limiting consumers' ability to purchase a loan.
Regarding Indonesian car sales in 2016, Gaikindo expects to see a five percentage point year-on-year growth to about 1.05 million units. This figure is similar to next year's estimated GDP growth figure. According to Gaikindo, the recently unveiled economic policy packages are expected to boost car sales in 2016. The multi-purpose vehicle is expected to remain the most popular type of car. Other segments that will boost car sales are the low cost green car and sport utility vehicle.
Indonesian Car Sales (CBU):
|Month||Sold Cars 2012||Sold Cars 2013||Sold Cars 2014||Sold Cars 2015|