According to the spokesperson for the Association of the Indonesian Automotive Industries (Gaikindo), Yongkie D. Sugiarto, the Indonesian automotive industry has benefitted from the nation`s economic growth, rupiah exchange rate stability, political stability, interest rates and market liquidity.
"Due to positive macroeconomic trends in the country, car sales have reached one million units this year, and it is expected to increase by 10 percent in 2013," said Sugiarto on Monday.
So far, he said there has not been a decrease in the demand for motor vehicles. As long as the public's purchasing power is high, car sales will increase next year.
"The economic growth rate of over six percent has been a decisive factor in the development of the automotive industry because it is related to the people`s purchasing power," he explained.
"70 percent of Indonesia`s consumers purchase cars using a line of credit," Sugiarto continued.
He said if the market is stable, the automotive industry will grow by 10 percent next year.
"We are afraid of the new Syariah rule, which states that the minimum down payment for cars is 30 percent of the sales price. This regulation will come into force from April 2013," he continued.
However, Sugiarto pointed out that the projection of 10 percent growth is not inclusive of green car (LCGC) sales.
"LCGC sales are projected to reach 150,000 units per year. If the cost of a LCGC car is Rp80 million, the national automotive industry will see an additional turnover of around Rp12 trillion per year," he added.
He said a number of companies such as Honda, Toyota and Daihatsu are keen on selling LCGC cars. However, they have not revealed the cars they will be selling.
According to the Industry Ministry's director general for high-technology priority industries, Budi Darmadi, the government has set a target of 1.1 million car sales for 2013.
"Annual car sales have been projected to reach 1.1 million units because new factories of Nissan, Honda and Daihatsu have become operational. This will automatically increase the nation's supply of cars," he said in October.
"Car sales in 2012 will most likely reach 950,000 units because of the increased production capacity of some of these companies," he stated.
"Towards the end of 2012, there has been an increase in the demand for cars in Indonesia, following the `Indonesia International Motor Show 2012' event," Budi noted.
Meanwhile, Gaikindo,s Chairman, Sudirman Maman Rusdi, said the Indonesian automotive industry could surpass Thailand,s automotive industry in three to four years.
"However, the government should set up the necessary infrastructure, implement appropriate policies, provide incentives for research and development, and ensure availability of raw materials such as iron, aluminium, rubber and plastic," he pointed out.
Gaikindo is made up of 42 automakers, including Astra International, Toyota Astra Motor and Daihatsu Astra Motor, while Astra`s group of companies controls 51 percent of the automotive market in the country.
Indonesia`s economy ($813 billion) expanded by 6.5 percent last year because of automobile sales.
Based on the data compiled by Gaikindo, car sales from January to September 2012 reached 816,322 units. In 2011, 894,164 units of cars were sold. Therefore, the government is optimistic that close to 1 million cars will be sold by the end of this year.
Japanese carmaker Toyota dominated the market by selling 298,646 cars in the last nine months, followed by Daihatsu, Mitsubishi and Suzuki.
In October, Toyota's sales reached 35,855 units. In November, the sales increased by 3.2 percent (reaching 36,996 units).
"Many people purchased Toyota Avanza," said PT Toyota Astra Motor's Marketing Director, Joko Trisanyoto.
He explained that 17,860 units of Avanza cars were sold in November, a 5.2 percent increase from 16,983 units in October.
"From January to November 2012, a total of 175,049 units of Avanza had been sold, an 18 percent increase as compared to the same period in 2011," he said.
Meanwhile, Daihatsu's sales exceeded this year`s target of 150,000 units. Daihatsu managed to sell 150,183 units in November 2012.
"As of November 2012, Daihatsu`s sales went up to 150,183 units, and Daihatsu managed to maintain a market share of 14.6 percent," said PT Astra Daihatsu Motor's Marketing Director, Amelia Tjandra.
"Daihatsu has done well because of the cars` performance level and the company`s customer service level," she said.
She added that Daihatsu has received an award from the JD Power Asia Pacific since it gained the highest score on the Sales Satisfactory Index.
(O001/KR-BSR/A014)
Reporter: Otniel Tamindael
Editor: Jafar M Sidik
Copyright © ANTARA 2012
