Below is a list with tagged columns and company profiles.

Today's Headlines Automotive

  • Pole Position: Indonesia Remains Largest Car Market within ASEAN

    Indonesia remains the biggest market for cars in the ASEAN region. Based on the latest data from the ASEAN Automotive Federation a total of 3.16 million cars were sold in the ASEAN region in 2016. Around 33 percent of these total sales occurred in Indonesia, the largest economy among ASEAN countries. In 2016 a total of 1.06 million vehicles were sold in Indonesia. On second place came Thailand with 768,788 sold cars. However, in terms of car production, Thailand remains on pole position in the ASEAN region.

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  • Automotive Sector Indonesia: Car Sales on Schedule in February

    In February 2017 domestic car sales in Indonesia rose 9.6 percent year-on-year (y/y) to 96,722 vehicles (from 88,208 sold vehicles in the same month one year ago), supported by the popularity of the Astra Toyota Calya and Astra Daihatsu Sigra (both are low-cost green cars) as well as strengthening purchasing power in the regions outside Java due to rising commodity prices. Also in the first month of 2017 Indonesian car sales grew on an annual basis, implying there rises optimism about Indonesia's automotive sector after having experienced two bleak years.

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  • Utilization of Indonesia's Car Manufacturing Capacity Low

    The utilization of Indonesia's installed car production capacity is expected to fall from 58 percent in 2016 to 55 percent in 2017 as the expansion of domestic manufacturing capacity is not in line with growth of domestic car sales and car exports. Indonesia's car production capacity rose 14 percent (y/y) to 2.2 million units in 2017 due to the start of operations at two factories (owned by Mitsubishi and Wuling). However, the actual car production figure of Indonesia is estimated to reach 1.2 million units only in 2017 (up 9 percent from 1.1 million units in the preceding year).

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  • Automotive Sector: Bright Future for Car Sales in Indonesia?

    Passenger car sales in Indonesia are estimated to rise 11.5 percent per year in the 2017-2021 period supported by Indonesia's expanding middle class. This conclusion originates from research that was conducted by London-based BMI Research. Meanwhile, business consulting firm Frost and Sullivan sees Indonesian car sales rise 5 percent (y/y) to 1.11 million vehicles in 2017 supported by the popular low cost green cars and multipurpose vehicles.

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  • Automotive: Toyota's Investment Realization in Indonesia at 70%

    Automotive manufacturer Toyota Motor Corporation already realized 70 percent of its total of IDR 20 trillion (approx. USD $15 billion) worth of investment commitments in Indonesia. Japan-based Toyota will materialize its investment commitments gradually up to 2019. Warih Andang Tjahjono, Vice President Director at Toyota Motor Manufacturing Indonesia (TMMI), said his company invested IDR 10 trillion in late-2016, both in the form of a capital injection and for additional production facilities.

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  • Car Sales Indonesia in 2016 May Achieve Gaikindo's Target

    Indonesia's car sales rose 3.7 percent year-on-year (y/y) to 974,972 vehicles in the first 11 months of 2016, improving from 940,027 sold vehicles in the same period one year ago. Jongkie Sugiarto, Chairman of the Indonesian Automotive Industry Association (Gaikindo), said this year's rising car sales in Indonesia are primarily supported by the launch of various new vehicles. He added Gaikindo's 2016 car sales target of 1.05 million could still be achieved, provided December's car sales will be more than 75,000 units.

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  • Automotive News Indonesia: Car Sales Growing in October 2016

    Car sales in Indonesia rose 4 percent year-on-year (y/y) to 91,846 units in October 2016 compared to 88,408 vehicles in the same month one year earlier. Growth is attributed to the stabilizing economy of Indonesia and the launch of several new car models (that managed to entice consumers). New data from the Indonesian Automotive Industry Association (Gaikindo) show that Indonesia's car sales totaled 874,703 units in the first ten months of 2016, up 2.5 percent (y/y) from 853,089 cars in the same period one year ago.

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  • Low Cost Green Car Boosts Indonesia's 2016 Car Sales

    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.

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  • Investment in Indonesia's Automotive Sector: Nissan's New Plant

    Nissan Motor Indonesia (NMI), the Indonesia-based local unit of Japanese multinational automobile manufacturer Nissan Motor Company Ltd, started construction of a new engine and transmission parts plant in Purwakarta (West Java). The plant, which will be constructed at NMI's existing facilities in Purwakarta, covers 3,000 of square meters in size and requires an investment of around IDR 435 billion (approx. USD $33.2 million). The plant is designed to have a production capacity of 96,000 units per year.

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  • Low Cost Green Car to Boost Indonesia's 2016 Car Sales

    Sales of low cost green cars (LCGCs) are estimated to boom in Indonesia this year, supported by the launch of the Toyota Calya and Daihatsu Sigra. These multi-purpose vehicles are expected to become popular on the Indonesian market as they are relatively cheap (in the range of IDR 110 - 150 million) and have a maximum passenger capacity of seven people. According to analysts the LCGC will control 20 percent of Indonesia's car sales market before the year-end. Especially, first-time car buyers show a preference for the LCGC.

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Latest Columns Automotive

  • Perennial Fuel Subsidy Dilemma; After Raising Prices, Indonesia Needs to Brace for High Inflation

    While one month ago we read (in Indonesian media) that Indonesian President Joko Widodo vowed no increase in prices of subsidized fuels before the end of 2022, the situation suddenly changed. Based on reports in Indonesian media in the second half of August 2022 there were growing signs that the government was busy preparing a significant increase in prices of subsidized fuels (involving Pertalite and Pertamax gasoline fuels as well as automotive diesel oil) to safeguard a healthy budget balance for the government.

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  • Overview of the Automotive Industry of Indonesia; the Electric Vehicle Arrives on the Scene

    The automotive industry is among the hardest-hit industries amid the coronavirus (COVID-19) crisis. In May 2020, when social and business restrictions were still very strict in places like Jakarta, car sales (wholesales; from the factories to the dealers) plunged 95.8 percent year-on-year (y/y) to 3,551 cars. Meanwhile, retail car sales dropped 96.1 percent (y/y) to 17,083 vehicles in May 2020. Never before had the Association of Indonesian Automotive Manufacturers (or Gaikindo) recorded such weak car sales figures.

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  • Indonesia May File WTO Complaint over Vietnam's Car Import Policy

    Indonesia may file a complaint at the World Trade Organization (WTO) over Vietnam's recent decision to tighten regulations related to car imports. Through Decree No. 116/2017/ND-CP on Overseas Vehicle Type Approval (VTA) (which has been in effect since 1 January 2018), Vietnam requires car exporters to obtain VTA certification first (from authorities in the exporting nation) before being allowed to export cars into Vietnam. This VTA details incoming vehicles' quality, safety and environmental protection.

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  • Automotive Sector: Ford Cars to Return on the Streets of Indonesia?

    After Ford Motor Indonesia, the local unit of American car manufacturer Ford Motor Company, exited Indonesia earlier this year as the company found it too difficult to compete with Japanese counterparts on the Indonesian market, Ford found a new way to make sure its components and after sales services can be delivered in Southeast Asia's largest economy.

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  • Automotive Sector Indonesia: High Hopes for Car Exports

    The government of Indonesia eyes rapid growth of car exports in the two decades ahead. By the year 2035 the government targets to see car shipments from Indonesia rise to 1.5 million vehicles (from around 200,000 exported units in 2016). By that year, exported vehicles should contribute 37.5 percent of total Indonesian car sales.

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  • Automotive Industry News: SGMW Motor Indonesia Enters Car Market

    A new player in Indonesia's automotive industry - backed by big carmakers from China and the USA - is eager to compete for market share in Indonesia. On Tuesday (11/07) SGMW Motor Indonesia inaugurated its first manufacturing facility in Cikarang (West Java). This local company is a joint venture between (1) SAIC Motor Corporation Ltd, a Chinese state-owned automotive design and manufacturing company headquartered in Shanghai, (2) General Motors Company (GM), a US multinational automotive corporation headquartered in Detroit, and (3) Liuzhou Wuling Automobile Industry Co Ltd, a China-based car manufacturer.

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  • Automotive Manufacturing Industry: Indonesia's Car Production Center

    Indonesia's automotive industry is centered around Bekasi, Karawang and Purwakarta in West Java. In this area various big global car-makers invested in industrial estates as well as car and component manufacturing plants. Therefore, it has become the production base of Indonesia's automotive sector (including motorcycles) and can be labelled the "Detroit of Indonesia". Detroit (Michigan, USA) is the birthplace of the US automotive industry and is home to car giants General Motor, Chrysler, and Ford.

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  • Indonesia's BI Rate Cut Not Enough to Boost Household Consumption?

    The decision of Indonesia's central bank (Bank Indonesia), last week, to cut its key interest rate (BI rate) by 0.25 percent to 7.00 percent and to cut the reserve-requirement ratio for commercial banks' rupiah deposits by 1 percent to 6.5 percent is a decision that should boost household consumption in Indonesia in 2016, improve people's purchasing power, give rise to a stronger automotive and property sector, and boost liquidity at local banks (hence providing room for an acceleration of credit growth in Southeast Asia's largest economy).

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