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Car sales rise 68% in October on extended tax cut, eased curbs
The carmakers association aims to sell 850,000 cars domestically this year, up from 530,000 last year.
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Workers assemble cars at a factory. A number of carmakers eye higher exports this year, targeting Southeast Asian and Middle Eastern markets. (Kontan/Fransiskus Simbolon)
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omestic car sales grew 68 percent annually within the January to October period this year, reversing a 46 percent sales decline seen in the same period last year, according to the industry.
Association of Indonesian Automotive Manufacturers (Gaikindo) chairman Yohannes Nangoi said on Thursday that domestic car demand was rising, following rising consumer confidence amid easing mobility restrictions and the extension of a luxury tax (PPnBM) cut on new cars.
“With the government support on luxury tax exemption, the auto-industry achieved good results,” said Yohannes in his opening remarks at the Gaikindo Indonesia International Auto Show (GIIAS) on Thursday.
The stimulus, which had been extended twice until the end of 2021, gives a 25 percent to 100 percent luxury tax cut on cars, depending on their size.
Read also: Indonesia reinstates temporary tax break for small-car sales
The association aims to sell 850,000 cars domestically this year, up from 530,000 last year. It also aims to export 300,000 cars this year, up from 220,000 last year.
Despite the sales hike, automakers said they had been struggling to meet demand due to component shortages amid a global supply chain crunch.
