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5 August 2020 (closed)
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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.
Due to the warm response of the market for the new LCGC vehicles, Astra International's market share in Indonesia's automotive market has grown to 54 percent (from 50 percent in 2015).
Jongkie Sugiarto, Chairman of the Indonesian Automotive Industry Association (Gaikindo), informed that car sales in Indonesia are much better this year compared to 2015 and therefore he is optimistic that Gaikindo's 2016 target can be achieved. In full-year 2016, Gaikindo targets to see Indonesian car sales rise by 5 percent year-on-year (y/y) to 1.05 million vehicles.
He mentioned that there are three factors that push Indonesia's car sales higher this year. Firstly, the macroeconomic environment of Indonesia has improved. In 2015 gross domestic product (GDP) of Indonesia expanded 4.7 percent (y/y). This year domestic and international institutions see Indonesia's GDP growing in the range of 4.9 - 5.1 percent, effectively ending the economic slowdown that occurred in the years 2011-2015. Higher economic growth boosts people's purchasing power and therefore demand for cars is rising.
Secondly, Gaikindo has been enthusiastically organizing car shows in Jakarta, Surabaya and Makassar this year, hence attracting more car buyers, particularly men. Lastly, new LCGC vehicles - launched this year - have boosted car sales in Southeast Asia's largest economy. The LCGC are affordable and fuel efficient cars that were introduced to the Indonesian market in late-2013 after the central government offered tax incentives to those car manufacturers that meet the requirements regarding fuel efficiency targets. Since the launch nearly three years ago, these LCGCs gained popularity in Indonesia's car market, currently accounting for nearly 20 percent of total Indonesian car sales.
Read more: Overview of Indonesia's Automotive Industry
The multipurpose vehicle (MPV) and sport utility vehicle (SUV) are - by far - the most popular vehicle types in Indonesia as they can carry up to seven passengers. These car types make it easier for families to go traveling together.
In September 2016 a total of 92,000 cars were sold in Indonesia, down 0.5 percent compared to car sales in the same month last year, according to the latest data from Gaikindo.
Indonesian Car Sales (CBU):
|Month|| Sold Cars
| Sold Cars
| Sold Cars
| Sold Cars
| Sold Cars
Can Indonesia surpass Thailand as biggest SEA car hub in next five years?
Voting possible: -
- Yes, but more incentives from government are needed to attract investment (60.3%)
- Yes, it will not even require additional efforts, it just needs time (17.6%)
- No, Thailand's automotive industry is too strong (17.6%)
- I don't know (4.4%)
Total amount of votes: 68