Car sales in Indonesia fell 17 percent (month-on-month) in July 2014 to 91 thousand vehicles, while motorcycle sales plunged 28 percent to 539,171 over the same period. The main reason for this sharp decline is the limited number of working days in July due to the Lebaran holiday (also known as Idul Fitri and which marks the end of the Islamic fasting month of Ramadan). As a consequence of this public holiday, production of cars and motorcycles declined, and less cars and motorcycles could be distributed to Indonesian dealers (wholesalers).
A sharp fall in Indonesian car and motorcycles sales is a normal phenomenon during the Lebaran period. Two weeks after the Lebaran holiday (which ended on 1 August 2014) sales should accelerate to a normal level. In the first seven months of 2014, domestic car sales have risen four percent to 733 thousand vehicles from the same period in 2013. The Indonesian Automotive Industry Association (Gaikindo) still targets total car sales of 1.28 million this year (from 1.23 million sold cars in 2013).
Despite overall declining car sales in July, Astra Daihatsu Motor recorded slightly higher sales (16,141 sold cars compared to 15,921 cars in the previous month). Sales of the Daihatsu vehicle rose seven percent to 111,464 in the January-July 2014 period, supported by the popular Gran Max, Ayla and Xenia models.
Sales at Suzuki Indomobil Sales, however, declined five percent to 12 thousand cars in July 2014 (from 12,500 cars in the previous month). Most popular car models at this company are Suzuki Ertiga, Carry pick up, and Wagon R.
Indonesian car sales are expected to get a boost from the Indonesia International Motor Show (IIMS) which will be held between 18 and 28 September 2014.
Indonesian Car Sales (CBU):
|Month||Sold Cars 2012||Sold Cars 2013||Sold Cars 2014|
|Indonesian Car Sales
(number of car units)
(number of car units)
¹ future forecast
Indonesian Motorcycle Sales in July 2014
Based on data from the Indonesian Motorcycle Manufacturers Association (AISI), Indonesian motorcycle sales fell 23 percent to 704,019 units in July 2014 (from the same month in 2013). Motorcycle sales in Southeast Asia's largest economy are still dominated by the Honda model.
However, when we compare motorcycle sales in the first seven months of 2014 to sales in the same period last year, then motorcycle sales have grown 2.4 percent to 4,755,644 units. Despite slowing economic growth (partly caused by stricter monetary macroeconomic policy including the higher interest rate environment), Indonesian consumers continue to purchase more cars and motorcycles. AISI targets total motorcycle sales of between 7.7 and 7.9 million units in 2014.
Indonesian Motorcycle Sales:
|Motorcycle Sales in Indonesia
| - Honda
| - Yamaha
¹ January-July 2014 motorcycle sales only
Source: Indonesian Motorcycle Industry Association (AISI)