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Carmakers to revise targets as first half sales disappoint
Many middle-income earners are opting to delay buying new cars to prioritize other needs, while some consider purchasing used cars.
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Set for shipment: Multipurpose vehicles are parked on April 8 at Tanjung Priok Port’s car terminal prior to being exported. Association of Indonesian Automotive Manufacturers (Gaikindo) data shows that Indonesia exported 104,158 built-up cars in the first semester of this year. (Antara/Aditya Pradana Putra)
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ndonesian carmakers saw sales plummet in the first half of the year, as households tightened their belts amid higher interest rates and weakening purchasing power, prompting producers to revise their targets.
Many middle-income earners are opting to delay buying new cars to prioritize other needs, while some consider purchasing used cars.
“I don’t think I will buy [a car] anytime soon,” said Angelina, a 26-year-old entrepreneur from Bandung, West Java, to The Jakarta Post on Tuesday. “What I'm looking for and what's on the market still don’t really match.”
Angelina was looking to buy her first car, preferably an SUV with either an internal combustion engine (ICE) or a hybrid. She set her budget at Rp 200 million (US$12,330), but most new SUVs are priced above that figure, leading her to consider used vehicles.
For now, buying a car is not her immediate priority, she noted, citing a need to focus on expanding her business while her motorcycle can still meet her day-to-day commuting needs.
Alvin, a 24-year-old entrepreneur from Central Jakarta, was also considering buying a car in the Rp 200 million price range. For now, Alvin saw used ICE cars as appealing because of their lower price when compared to new cars.
Alternatively, he also considered buying a battery electric vehicle (BEV), which could benefit from tax incentives and exemption from the odd-even number plate zoning policy that is aimed at reducing traffic.
