Car sales in July 2013 are expected to reach around 110,000 car units, which would imply a 7.3 percent rise compared to car sales in July 2012.

Indonesia's Car Sales 2013:

 Month     Sold Cars
 January        96,703
 February       103,267
 March        95,934
 April       102,198
 May        99,568
 June       104,265
 Total       601,952

Source: Gaikindo

The discount actions have been in progress for most of this year and are expected to continue after Lebaran. Sales figures need this boost because Indonesia's economy is growing at a slower pace with gross domestic product (GDP) at 5.9 percent in Q2-2013. Moreover, inflation is on the rise after the government increased the price of subsidized fuels last month and might reach up to eight percent this year. And if the weakening rupiah continues its downward trend compared to the US dollar then interest rates will increase and subsequently lead to the end of the discounts. At this moment, Indonesia's Automotive Industry Association (Gaikindo) still expects the total number of sold car units to be similar to last year's result, when 1.1 million cars were sold. But if interest rates will rise, then the association will revise its forecast.

       2008      2009      2010      2011      2012
Indonesia's Car Sales
(number of car units)
   607,805    486,061    764,710    894,164   1,116,230

Source: Gaikindo

In the first six months of 2013, 601,952 cars were sold in Indonesia. This is a 12.5 percent increase compared to the 535,261 sold units in the first six months in 2012. Toyota is the traditional market leader in terms of sold car units. This Japanese brand is distributed by Astra International, Indonesia's largest company by market capitalization.

Car Brand   Jan - June
  Market Share
Toyota     215,353         35.8%
Daihatsu      88,446         14.7%
Mitsubishi      77,435         12.9%
Suzuki      75,425         12.5%
Honda      49,342          8.2%
Nissan      31,339          5.2%
Isuzu      16,227          2.7%

Source: Gaikindo