Motor vehicle sales in the Indonesian automotive industry in the first half of 2024 recorded a decline compared to the previous year.
Tangerang, Banten (ANTARA) - Industry Minister Agus Gumiwang Kartasasmita has urged automotive manufacturers to not increase the prices of products amid sluggish market conditions.

"We ask manufacturers not to increase their price because the current market is stagnant," he said after attending the opening of the Gaikindo Indonesia International Auto Show (GIIAS) in Tangerang, Banten, on Thursday.

The minister informed that people's purchasing power is currently declining, influenced by the high United States dollar-Indonesian rupiah exchange rate, among other things. Therefore, the government has asked manufacturers to refrain from increasing the prices of products.

Kartasasmita then drew attention to the Low-Cost Green Car (LCGC) program, which is a part of efforts to support environmentally friendly vehicles.

The government is currently calculating the quantum of price increases that can be applied to LCGC units by producers participating in the program.

"We are currently calculating it, so producers participating in the LCGC program can increase their prices according to the regulation. But we ask others not to or refrain from increasing prices," he emphasized.

Motor vehicle sales in the Indonesian automotive industry in the first half (first six months) of 2024 recorded a decline compared to the previous year.

As per the latest data uploaded by the Association of Indonesian Automotive Industries (Gaikindo) on its official website, in the first half of 2024, sales in the wholesale segment reached 408,012 units, or 19.5 percent lower compared to 506,427 units in 2023.

Meanwhile, the retail segment only managed sales of 431,987 units, down 14 percent from 502,533 units the previous year.

According to a report from Gaikindo, wholesale sales in June 2024 were recorded at 72,936 units, down 11.8 percent compared to the same period on the previous year. Meanwhile, retail sales recorded of just 70,198 units, or a decline of 12.3 percent.

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Translator: Fathur Rochman, Resinta Sulistiyandari
Editor: Arie Novarina
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