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The government’s regulation on minimum down payments for automotive loans has had no significant effect on the sale of commercial vehicles given that this kind of vehicle is mostly used to support business players’ activities.
“We have implemented the government regulation that requires purchasers of a commercial car to pay a minimum down payment of 20 percent. However, this does not affect business players’ interest in buying a commercial vehicle,” Isuzu Astra’s head of product marketing, Edy Yusuf Oekasah, was quoted as saying by Koran Jakarta recently.
“This type of car is one of the primary needs of business players when it comes to business support facilities.”
The government policy on the minimum down payment for automotive and housing loans was issued on June 15.
Edy is optimistic that the sales target of 36,000 Isuzu commercial cars would be met by the end of 2012.
The recovery of traditional trade activities in rural and urban areas has also contributed to the stable demand.
“Commercial cars, such as pick-ups, are used as a means of daily transportation,” he said.
Various brands of commercial cars, including FAW, Foton, Hino, Isuzu, MAN Trucks, Mercedes-Benz, Mitsubishi Fuso, Tata Motors, Toyota Dyna, and UD Trucks are on display at the ongoing Indonesia International Motor Show (IIMS) at the Jakarta International Expo (JIExpo) in Kemayoran, Jakarta.
PT Duta Putera Sumatera, the sole agent for MAN Truck & Bus, for instance, is showcasing its latest TGS 33.360 model at the IIMS 2012. The TGS 33.360, with a powerful and efficient 6x4 moving system for transportation, will enter the Indonesian market amid increasingly tight competition in the truck market.
Toyota Astra Motor (TAM) marketing director Joko Trisanyoto shared Oekasah’s view, saying that the increase in demand for commercial vehicles is due to the growth of the plantation, forestry and mining sectors.
As long as economic growth remains strong, a number of business sectors would need commercial cars, he said, adding that there was a possibility for the business to grow.
Meanwhile, Indonesian Automotive Manufacturers Association (Gaikindo) chairman Jongkie D Sugiarto said earlier that Indonesia experienced rapid growth of the commercial car market over the last five years. Growth is predicted to reach 144.3 percent by the end of 2012 compared to five years ago.
Barring a major reversal, the sale of commercial vehicles will reach 300,000 units by the end of 2012, or 32 percent of the total national car sale target of 940,000 units.
Data at Gaikindo shows that 132,016 commercial vehicles were sold during the January—May period, an 18.18 percent increase from the 111,711 sold in the corresponding period of 2011.
Meanwhile, the growth of plantation, mining and logistics business has also had a significant effect on the sale of medium-sized trucks. The sale of the medium trucks reached 16,285 units in the first five months, a 93.32 percent surge compared to 8,424 units sold in the corresponding period of last year.
Big trucks have seen sales growth of 33.6 percent in the corresponding period from 256 units to 342 units.
Commercial car sales volume has also contributed to growing monthly sales.
“The sale of commercial vehicles in May jumped 24.75 percent to 26,400 units, compared to 21,203 sold in the corresponding month the year before.
Several major sole agents of commercial vehicles have expanded their business to take advantage of growing demand.
PT Hino Motors Sales Indonesia (HMSI), for instance, is building a new plant in Purwakarta, West Java, with an investment of US$107 million.
The company expects that the factory will be completed by the end of this year, according to its sales promotion director Santiko Wardoyo.
The factory, built on 12 hectares of land, will have production capacity of 55,000 units per year.
Currently, Hino’s production capacity is 35,000 units per year, which is on par with the firm’s sales target. “With the operation of the new factory, Hino will need to meet a higher sale target,” he said.