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Domestic car sales plunge 24 percent yoy in first quarter
The domestic car market remains in the doldrums with a strong year-on-year (yoy) decline, but the industry sees signs of a possible rebound in March's wholesale and retail figures.
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New cars are seen parked at a factory on March 13, 2024, in Bojomangu, Bekasi regency, West Java. (Antara/Fakhri Hermansyah)
T
he first quarter of the year has proven dismal for the automotive industry as domestic car sales declined significantly when compared to the previous year, something that industry representatives attribute to economic headwinds.
Sales from factories to dealers (wholesale) were down 23.9 percent year-on-year (yoy) at 215,069 units nationwide in the January-to-March period, according to the latest data from the Indonesian Automotive Manufacturers Association (Gaikindo).
Retail sales, or direct purchases by consumers, dipped 15 percent yoy to 230,778 units over the same period.
Gaikindo cochairman Jongkie D. Sugiarto pointed to macroeconomic factors such as slower economic growth, a weakening of the rupiah against the United States dollar and high interest rates as factors behind lackluster domestic car sales this year, as reported by Bisnis.
Read also: Car sales continue to decline in February
Indonesia’s GDP growth stood at 5.05 percent in 2023, marking a slowdown from 5.31 percent in the preceding year, according to Statistics Indonesia (BPS).
However, the most recent GDP data showed growth of 5.04 percent in last year’s final quarter, which is marginally higher than the rate of 5.01 percent registered one year earlier.
