The domestic car market in Indonesia remained bullish in the first half of this year as shown by latest sales data by the local automotive industry, refuting concerns over impacts of the global economic crisis and the newly introduced rule on the minimum down payment.

Car sales, which along with motorcycle sales are an indicator of consumption in Southeast Asia’s largest economy, rose by 27.55 percent to 535,263 units during the January-June period this year from the same period last year, according to the latest statistics of the Indonesian Automotive Industry Association (Gaikindo).

Toyota Astra Motor (TAM) still led the market with sales topping 202,519 units, up by 33 percent from a year ago, mainly driven by sales of its multi-purpose vehicle (MPV) Avanza, which totaled 136,694 units, up by 25.4 percent from last year. Toyota’s dominance is seen in almost all categories, such as sedans and sports utility vehicles, with sales reaching 9,075 units (57.4 percent) and 28,635 units (44 percent) respectively.

Astra Daihatsu Motor (ADM) came in second place, with sales reaching 80,956 units, up by 24.64 percent from the past year, on the back of its MPV Xenia and the Gran Max, which totaled 36,852 units and 25,877 units respectively.

Joko Trisanyoto, the marketing director of TAM, said that with the achievement, his firm surpassed its initial target of reaching 36 percent of overall auto sales. During the first six months of this year, the firm had a 37.8 percent market share.

“Toyota’s sales are quite good as their growth is higher than the overall market, pushing up our market share,” he said.

Joko expected sales would further surge in the second half of this year, particularly driven by rising sales ahead of the Idul Fitri holiday, but still cautioned about the negative impact of the new rule on

down payments, which would likely put downward pressure on sales after July. “It’s possible that we will achieve the same level of the first semester,” he added.

The central bank introduced in March a new rule that raised the minimum down payment for purchases of automobiles, from 10 percent to 25 percent of the price for commercial vehicles and to 30 percent for passenger cars and purchases of motorcycles from 5 percent to 25 percent.

The hike in the minimum down payment is intended to avert a potential credit bubble and excessive jump in consumer loans.

Rizwan Alamsjah, the marketing director of PT Krama Yudha Tiga Berlian Motors, the authorized distributor of Mitsubishi vehicles, said that as the projection for the first semester was achieved, the firm would maintain its target for the second semester. The firm sold more than 73,987 units during the first semester of this year, with commercial vehicles accounting for the larger share.

“Seeing this first semester’s result, we are optimistic that we can reach the full year’s target of 140,000 units,” Rizwan said.

Another aspect to watch is the potential drop in commodity exports due to declining prices in the overseas market, which could negatively impact the sales of its commercial vehicles,according to Rizwan.

In terms of growth rate, premium carmaker BMW recorded the highest expansion. During the first semester of this year, PT BMW Group Indonesia, which is the Indonesian unit of the Germany-based automaker, booked a 48 percent year-on-year increase in sales to 1,061 units, corporate communications director Helena Abidin said.

“Sales of BMW Series 5, Series 3 and Series X1 have largely driven sales in the first semester,” she said.

BMW, for instance, sold 336 units of its Series 5, up 75 percent compared to last year, while it delivered 207 units of Series X1, up 250 percent from the past year, according to the firm’s statistics.

Helena further said that the upcoming months had a positive outlook, and that the company’s double digit growth would continue until end of year, as it would launch several new models soon.

Last year, BMW sold 1,551 units, but no target for this year is available. “The new increase in the down payment requirement will not significantly affect sales of vehicles in the premium segment, contrary to the mass segment,”
she explained.

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