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Auto sales rebound, on pace to meet 2014 target
Auto sales in Indonesia were back on growth in June after suffering a temporary glitch in May, with the countryâs automotive industry group predicting that this yearâs sales target of 1
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Auto sales in Indonesia were back on growth in June after suffering a temporary glitch in May, with the country's automotive industry group predicting that this year's sales target of 1.2 million units would be met or even surpassed.
The nation's auto sales rose 6 percent in June on an annual basis to 110,560, after a 2.6 percent drop in May, according to data from the Association of Indonesian Automotive Manufacturers (Gaikindo) as quoted by Reuters on Monday.
Auto sales ' a key indicator of consumption in Southeast Asia's largest economy ' normally rise during Ramadhan, as the world's most populous Muslim-majority nation celebrates the festivity.
June figures brought total auto sales during the first six months of this year up 6.7 percent in the first half ' a sign the country's auto sales will remain stable this year despite current volatile economic conditions.
As much as 642,311 units were sold from January through June, compared to 602,214 units in the same period last year, according to a report released on Monday by diversified conglomerate PT Astra International.
More than half of car sales were dominated by Astra International, which sells mostly Japanese-branded cars such as Toyota, Daihatsu and Isuzu, according to the report.
Gaikindo secretary-general Eddy Sumedi said on Monday that the sales increase occurred in almost all car segments.
'With the current sales achievement, we believe that this year's total auto sales will remain the same as last year, which was 1.2 million units, or increase moderately,' he told The Jakarta Post.
Voicing a similar view, Astra International investor relations head Tira Ardianti said she was upbeat that her firm would record between 5 and 10 percent growth this year, in line with growth in the industry as predicted by Gaikindo.
'Car demand was good during the first half and we also have bigger production capacity,' she said.
Tira said that 15 percent of total Astra's auto sales in the first half were contributed by its low-cost green car (LCGC) segment ' Toyota Agya and Daihatsu Ayla ', while around 45 percent of its total sales were contributed by its low multipurpose vehicle segment ' Toyota Avanza and Daihatsu Xenia.
She said, however, that although she was upbeat her firm would still record moderate growth this year, the current volatile rupiah exchange rate against the US dollar would likely influence customers' purchasing power.
'However, I can't predict how big the impact will be. What we can do is keep an eye of customer behavior,' she said.
Tira said that with the right strategy, auto manufacturers in the country would still be able to attract more customers in the second half.
PT Hyundai Mobil Indonesia president director Mukiat Sutikno said, meanwhile, that this year's auto sales were actually not as good as last year.
'The increase in auto sales during the first half was actually very much contributed by LCGCs. Other segments might have even decreased,' he said.
Mukiat said that Hyundai recorded a 15 percent decline during the January-June period this year, mainly due to supply delays.
He said that his firm would aim to sell more of its city cars in the second semester this year to boost revenues.
