Below is a list with tagged columns and company profiles.

Today's Headlines Automotive Industry

  • Car Sales Indonesia June 2015: Higher, and yet Lower

    In line with expectation and the historic trend, Indonesia’s car sales rose - on a monthly basis - in June 2015 ahead of the Idul Fitri celebrations (that mark the end of the Islamic holy fasting month). Car sales in Indonesia usually increase ahead of Idul Fitri (also known as Lebaran), a tradition which involves the exodus of millions of Indonesians from the cities to their places of origin. Before the journey to the villages a portion of these travelers are eager to buy a new car, a decision often influenced by promotional campaigns and discount programs.

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  • Indonesia’s May Car Sales Decline 18% on Weak Consumer Demand

    Car sales in Indonesia have declined 17 percent to 443,328 units in the first five months of 2015 according to the latest data from the Indonesian Automotive Manufacturers Association (Gaikindo), hence providing further confirmation that consumer demand has continued to fall amid the country’s slowing economic growth, depreciating rupiah and accelerating inflation. Car sales are one of the key indicators to measure people’s purchasing power as well as the general state of the economy.

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  • Weak Results Astra International Sign of Slowing Indonesian Economy?

    Being the barometer of the Indonesian economy - due to the company’s presence in various sectors of the economy - the financial performance of Astra International in the first quarter of 2015 provides valuable information about the current condition of the Indonesian economy (ahead of the official release of the country’s Q1-2015 GDP growth). As Astra’s net profit and revenue declined 15.6 percent and 9 percent, respectively, from the same quarter last year, investors’ concern about the country’s Q1-2015 GDP growth figure is justified.

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  • Why Will General Motors Close its Assembly Plant in Indonesia?

    General Motors Indonesia (GM Indonesia), the local unit of the US-based General Motors Company, made a loss of about USD $200 million in the years 2013-2014 due to higher operational costs while sales did not grow accordingly. The company was unable to compete with its dominant Japanese rivals, led by Toyota Motor. These were the main reasons behind the company’s decision to close its assembly plant in Bekasi (East of Jakarta) by mid-2015 (implying the dismissal of 500 employees).

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  • Automotive Industry Indonesia: Car Exports in 2014 Rising Steadily

    Indonesian car exports may reach 310,000 vehicles in 2014, a 12.72 percentage point growth from last year (275,000 vehicles). Exports of completely built up (CBU) units are expected to number 200,000 while completely knocked down (CKD) units are estimated to reach 110,000 units by the year-end. Indonesian Industry Minister MS Hidayat confirmed that the automotive industry of Indonesia has shown good performance. Currently, Indonesian automotive products are exported to a total of 80 countries.

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  • Exports of Indonesia's Automotive Sector Grow 10.4% in First Quarter 2014

    The national automotive industry of Indonesia recorded export growth of 10.4 percent in the first quarter of 2014 (year-on-year). Statistics Indonesia said that exports in the automotive industry (which includes automobiles and motorcycles) were worth USD $1.27 billion in the first three months of the year, compared to USD $1.15 billion in the same period in 2013. However, the automotive industry of Indonesia only contributes 3.49 percent to the country's total non-oil & gas exports.

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  • Astra Otoparts: Indonesia's Leading Automotive Component Company

    Indonesia Investments updated the company profile of Astra Otoparts. This company, which is a subsidiary of Astra International, is Indonesia’s leading automotive component company. It produces and distributes spare parts for both motorcycles and cars. Astra Otoparts is supported by seven business units, fifteen consolidated subsidiaries, and eighteen associates and jointly controlled entities. A number of these subsidiaries or affiliated companies are joint ventures with prominent component manufacturers from Japan, China, Europe and USA.

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  • Astra International: Company Profile of a Leading Indonesian Conglomerate

    Indonesia Investments has updated the company profile of Astra International. The company is the largest Indonesian company that is listed on the Indonesia Stock Exchange (IDX) in terms of market capitalization. Although Astra International (ASII) is a diversified conglomerate that is present in most major sectors of the Indonesian economy, the majority of its revenues still originates from its dominant position in Indonesia's automotive industry. The company controls about 54 percent of the country's wholesale car market.

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  • Car Sales in Indonesia Grow 8.2% in February Backed by LCGC Demand

    Car sales in Indonesia grew 8.2 percent (year-on-year) to 111,767 vehicles in February 2014 according to the latest data from the Association of Indonesian Automotive Manufacturers (Gaikindo). As usual, car sales were dominated by Toyota, Daihatsu (both are distributed by Astra International, one of Indonesia's largest diversified conglomerates), Mitsubishi, Suzuki and Honda. February sales were supported by the popular low-cost green car (LCGC) that was introduced on Indonesia's market in 2013.

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  • Indonesia's Increasing Significance for Toyota's Global Car Sales

    Indonesia remains an important sales market for Toyota, Japan's multinational corporation and one of the world's largest automobile manufacturers. In 2013, Toyota sold a total of 8.66 million cars worldwide, around 435 thousand of which were sold in Indonesia. The company which holds the exclusive right to sell Toyota units on the Indonesian market is Astra International, one of the largest diversified conglomerates in Indonesia. With a market share of 35 percent, Toyota is the dominant market leader in Indonesia's car sales market.

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Latest Columns Automotive Industry

  • Performance of Indonesia's Astra International to Improve in 2016?

    The performance of Astra International, one of Indonesia's leading diversified conglomerates (but particularly known for being the dominant force in the country's automotive industry), is expected to improve next year on the arrival of new car models, estimated accelerated economic growth and its rivals' stagnating production capacity expansion. As such, Astra International should be able to increase its market share and feel less need to offer its cars to customers at discounted rates.

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  • Automotive Market Indonesia: Car Sales to Rebound in 2016

    Indonesian car sales may rise up to ten percent (y/y) to 1.1 million vehicles in 2016, from an estimated 1 million this year, amid accelerating economic growth in Indonesia. Car sales in 2015 have been disappointing, declining 18 percent (y/y) to 853,008 units in the first ten months of 2015, due to people's weakening purchasing power. Sales in 2016 are expected to be boosted by sales of the low-cost green car (LCGC), which was introduced on the Indonesian market in late-2013, and the crossover utility vehicle, a car that has gained popularity recently.

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  • Car Industry Indonesia: Tough Times for Indomobil Sukses Internasional

    Indonesian automotive group Indomobil Sukses Internasional is facing challenges in 2015. The listed company, affiliated with the Salim Group (one of Indonesia’s largest conglomerates), is plagued by intense competition in the car industry of Indonesia, while it also feels the negative impact of the weak rupiah (which is depreciating against the US dollar). Over 2014, the company posted a net loss of IDR 128.2 billion (USD $9.9 million), down significantly from net profit of IDR 532.5 billion it recorded in the preceding year.

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  • Investments in Indonesia Expected to Exceed IDR 100 Trillion in Q1-2014

    Mahendra Siregar, Head of the Indonesia Investment Coordinating Board (BKPM) is optimistic that realized investment in Indonesia can reach over IDR 100 trillion (USD $8.6 billion) in the first quarter of 2014, particularly supported by foreign direct investment (FDI) in the country's automotive and electronics sectors. Siregar uttered his optimistic view at the groundbreaking of the new Toyota factory in Karawang (West Java) on Tuesday (25/02). Foreign investors remain buoyant on the potential of Indonesia's rapidly expanding consumer force.

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  • Car Sales in Indonesia Unaffected by Weather Conditions in January 2014

    Despite higher car prices due to the depreciating rupiah exchange rate, domestic car sales in Indonesia rose 11 percent to 107,496 in January 2014 compared to the same month last year. January sales were particularly supported by sales of the low cost green car (LCGC) and low multipurpose vehicle (LMPV). Both these car types enjoy high popularity in Indonesia. In 2013, the Indonesian government provided tax incentives for the establishment of a domestic LCGC industry.

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  • Expansion of Indonesia's Automotive Industry: Raising Exports to Asia

    Indonesia's automotive industry experienced some drastic changes in recent years. Originally regarded as a mere production hub due to cheap productions costs (particularly wages), it changed into a major car sales market as per capita GDP continues to grow and gives rise to an expanding middle class. Since 2011, domestic car sales in Indonesia have reached record highs and given that the country's per capita car ownership is still relatively low, there is room for more growth. But Indonesia is also eager to become an important car exporting country.

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  • Indonesia Attracts Investments in Car Components Worth USD $1.5B

    In 2014, Indonesia is expected to see capital inflow of between USD $1 billion and USD $1.5 billion of funds for investments in the country's car components industry. About 20 to 30 companies are eager to expand or start business in this sector of Southeast Asia's largest economy (each investing about USD $50 million). Indonesia's car industry is attractive due to record high car sales in recent years (triggered by strong domestic GDP per capita growth) as well as double-digit export growth (although coming from a low base).

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  • Popular Low Cost Green Car Boosts Indonesian Car Sales in 2013

    Indonesian car sales have already exceeded the one million mark in October 2013. In the January-October period, 1,018,786 car units were sold, a ten percent increase compared to car sales in the same period last year. Growing demand for cars in Indonesia indicates that this sector of Southeast Asia's largest economy is not influenced by current negative market sentiments, such as the sharply depreciated Indonesian rupiah exchange rate (against the US dollar), high inflation (8.32 percent yoy in October 2013), and slowing economic growth.

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  • General Motors (GM) Eager to Expand its Car Business in Indonesia

    General Motors Company (GM), the American multinational holding corporation that engages in the automotive industry, aims to expand its partnership with China's SAIC Motor Corp by joining hands to enhance business activities in Indonesia. Recently, speculation emerged that both companies were drifting apart. However, both camps claim that the relationship has never been better. In fact, GM China and SAIC are opening four new plants in China which will add 1 million cars (per year) to the current production capacity of 3 million vehicles.

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  • Indonesian Automotive Industry: Car Sales Expected to Hit Record in 2013

    Car sales in Indonesia are expected to exceed the target set by the Indonesian Automotive Industry Association (Gaikindo) in 2013. The institution originally set a target of 1.1 million sold car vehicles in 2013, which is similar to the sales result in 2012. However, in September 2013 car sales recorded a new monthly record (115,921 sold units) after consumers sped up car sales as prices will increase in October. Up to the third quarter of 2013, total car sales have increased 11.2 percent compared to the same period last year.

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