Car sales down 24 percent in September over longer holidays

The Idul Fitri holiday season saw car sales in September decline by about 24 percent from the previous month, the Indonesian Automotive Industry Association (Gaikindo) said Saturday.

The association’s data showed car sales declined to 49,137 units in September from 64,762 in August and 72,090 units in July, which was the biggest month for sales so far this year.

Gaikindo deputy chairman Jongkie D. Sugiarto said that the holiday season had a negative impact on sales as many car distributors closed their offices for two weeks for Idul Fitri. However, he said, sales would likely rebound in the remaining three months of the year.

“This trend happens every year. The Idul Fitri holiday season is always a slow period for car sales in the country,” he told The Jakarta Post.

Despite September’s hiccup, car sales in the country have shown steady performance throughout the year. September sales were 32 percent higher than in the same month last year, during which 37,208 units were sold.

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As long as the government can maintain our economic stability, we should not worry about car sales.

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Jongkie said that the robust growth in the sector had seen car manufacturers, assemblers and distributors in the country back a previous estimate of 700,000 cars sold this year as still realistic.

“The September decline will not hinder this year’s cumulative sales. We’re upbeat on seeing 700,000 cars sold by the end of this year,” he said confidently.

Jongkie added that the country’s current robust economic performance had increased the public’s purchasing power.

The nation’s economy grew 5.6 percent in the first semester of the year, and is expected to exceed 6 percent this year, according to the Finance Ministry.

Jongkie said that every car brand in the country had formulated strategies to boost sales in the last three months of this year, including by preparing to launch several new models to attract more customers.

“As long as the government can maintain our economic stability, we should not worry about car sales,” he said. Jongkie, who is also the president director of Hyundai Motor Indonesia, forecast that car sales would remain steady next year in the country, estimating growth at between 10 and 15 percent.

By the first nine months of this year, the country’s cumulative car sales had reached 556,196 units, up 65 percent from 337,468 in the same period last year, according to data from Gaikindo. (rdf)