According to industry players, the Indonesian automotive market will grow at less than 10 percent in 2013.
"I think the market will grow but not at the current rate. It will very likely be below 10 percent per annum," said Rizwan Alamsjah, the executive marketing director of PT Krama Yudha Tiga Berlian Motor, Mitsubishi's sole agent in Indonesia, in Bali on Monday.
He noted that Indonesia might be able to maintain its economic growth rate next year, but it would face many challenges, such as weakening commodity markets, both at home and abroad.
Rizwan`s opinion was shared by Prijono Sugiarto, the president director of PT Astra International. "Commodity prices are expected to drop while the global economic condition is unlikely to improve. Additionally, labour wages will increase, but the global market condition is deteriorating," he said while speaking at a workshop on automotive industry in Bandung, West Java, recently.
Besides the global economic crisis stemming from Europe and the United States, the possibility of a hike in fuel oil prices and Bank Indonesia's new regulation which mandates the imposition of a 20-25 percent increase in the minimum down-payment requirement for motor vehicles will hamper the industrial sector's growth.
"We are going to enter a difficult phase in 2013 because we will face many constraints in the industrial sector. We should take anticipatory measures and develop new strategies in each line of business so we could increase productivity and efficiency," Prijono stated.
According to Rizwan Alamsjah of PT Krama Yudha Tiga Berlian Motor, the Indonesian automotive industry will not be able to see a growth of more than 10 percent next year.
"A 15 percent increase in the transfer of motor vehicle ownership titles, along with the imposition of progressive taxes, will negatively affect the automotive market," he said.
"Mitsubishi sales growth in Indonesia will also probably be in line with the automotive market growth in the country. Both are expected to remain below 10 percent," Rizwan stated.
PT Krama Yudha Tiga Berlian Motor predicted its overall car sales this year would reach 150,000 units. It expects to raise the figure to 175,000 in 2013.
"Sales in 2013 are projected at 175,000 units. In 2012, sales are expected to reach 150,000," Rizwan said on Friday.
He said Indonesia`s car market was expected to grow in light of the projection that the country`s economy would grow at 6.8 percent next year.
"The commercial car segment has so far been a good bet for the company, because it accounts for 90 percent of Mitsubishi car sales. On the other hand, the Pajero, Outlander Sport and Mirage models, which were marketed this year, accounted for only around 10 percent of the total sales," Rizwan pointed out.
"Next year, the passenger car segment is likely to continue lagging behind the commercial car segment," he said.
Car sales are predicted to reach about 1.1 million units by the end of this year. Therefore, given that car sales are expected to increase by 10 percent next year, Indonesia is likely to see sales of 1.2 million cars in 2013.
Industry Minister MS Hidayat has predicted that automobile production will reach 1 million units by the end of this year, an increase from last year`s total automobile sales of 894,164 units.
"The production figure will continue to increase as the Indonesian economy grows," he said in his speech during the inauguration of the third plant of PT Denso Indonesia in Bekasi, West Java, recently.
According to Hidayat, the increased production indicates the improved competitiveness of the local automotive industry. "Therefore, the Indonesian government encourages foreign investors to ride on this momentum and invest in the nation's automotive sector," he explained.
"The investors can cooperate by partnering with local companies. Or, for instance, domestic companies can invite their business partners in Japan to invest in Indonesia," Hidayat continued.
Meanwhile, PT Toyota Astra Motor (TAM), up to November this year, has recorded sales of 35,855 cars. Toyota has maintained it lead in the country's car market.
"Avanza multipurpose vehicles (MPV) accounted for a majority of Toyota car sales," said Joko Trisanyoto, the marketing director of TAM, last week.
He noted that Avanza sales last month reached 17,860 units, up 5.2 percent from 16,983 units in October.
"The November sales exceeded the previous monthly record of 17,364 units, which was set in March," Joko pointed out.
During the January-November period, Avanza sales reached 175,049 units, up 18 percent year-on-year. Increases were also recorded in the sales of compact vehicles, MPVs, SUVs, commercial vans, and pick-up trucks.
Sales of Toyota Yaris reached 2,736 units last month, up 24.6 percent from the 2,196 units sold in October.
Total sales of Toyota passenger cars reached 32,855 units in November, an increase of 2.6 percent from the previous month.
Last month, PT Toyota Astra Motor President Director Johnny Darmawan had predicted that TAM`s Toyota car sales would reach 400,000 units, up 30 percent from last year`s figures.
"I am convinced that Toyota car sales will exceed 400,000 units this year," he stated.
"Toyota Indonesia is ranked fifth in global sales, after the United States, Japan, China and Thailand,` Johnny noted.
"Car sales in Thailand increased after the government started providing incentives," he explained.
Johnny predicted that car sales in Thailand would reach 1.2-1.3 million by the end of the year, while car sales in Indonesia would touch 1.1 million.
(A014/KR-BSR)
Reporter: Andi Abdussalam
Editor: Jafar M Sidik
Copyright © ANTARA 2012
