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Indonesia 2011 car sales to top 870,000 units

16 December 2011

Indonesia 2011 car sales to top 870,000 units

JAKARTA: Automotive manufacturers are confident car sales in 2011 to top the 870,000 units target, although November sales slumped 21.59% due to the great flood in Thailand.

Such optimism is supported by the stability in the economic condition which helps to strengthen purchasing power, bolster the growth of middle-income earners as the potential first-time car buyers now have an income per capita of more than US$3,000.

General Chairman of Indonesian Vehicles Industries Association (Gaikindo) Maman Rusdi said the great flood in Thailand only gives temporary impacts on local car sales. Most component and assembling plants that were hit by the flood have already resumed operations.

"The reactivation of these plants has given an optimism that the car supply of completely built up (CBU) imported from Thailand so far could be normal, leading to higher sales,” Sudirman said yesterday.

Gaikindo’s data shows total import of CBU from other countries reached approximately 9.6% of total sales per month with the greatest contribution coming from Thailand, at between 45% and 60%.

Indonesia also imports completely built up (CBU) and completely knocked-down (CKD) cars from Germany, South Korea, US, and Japan.

Besides the subsiding flood impacts, Sudirman added, the automotive industries have started boosting their production.

With the better conditions, the car sales in December at least could achieve between 77,000 units 80,000 units. In conclusion, total sales in 2011 could stay higher than 880,000 units or top the target set in early year,” he said.

Condition in November

Gaikindo's preliminary data shows that car sales in November fell 21.59% to 67,701 units from 86,345 units in October.

At least, five exclusive sole agents for Japanese brands -- Daihatsu, Honda, Isuzu, Suzuki, and Toyota – have seen declining sales.

In November 2011, Toyota sales declined 51.15% to 15,195 units from 31,109 units in October leading to weakening car sales in Indonesia.

Daihatsu's sales fell 24.22% to 9,900 units from 13,065 units, while sales of Honda slumped 27.76% to 2,907 units from 4,024 units.

Then, Suzuki posted weakening sales by 5.81% to 8,732 units from 9,271 units and sales of Isuzu was corrected by 0.19% to 2,596 units from 2,601 units.

In contrary, three Japanese car sole agents booked sales growth, namely Mazda, Nissan, and Mitsubishi.

Sales of Mazda rose 21.77% to 951 units from 781 units, while sales of Nissan strengthened 0.77% to 6,380 units from 6,331 units, and Mitsubishi’s sales enhanced 17.72% to 13,532 units from 11,495 units.

The ample amount of cars in inventory that could serve demands helped the sales growth. Most of Mitsubishi’s vehicles are manufactured in Indonesia, so the great Thailand flood gave no impact on Indonesian sales.

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