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Domestic car production slumps by 11 percent in September
Automobile production has declined, in part because of the weakening purchasing power of Indonesian customers.
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Cars pass along Jl. Gatot Subroto in Jakarta on June 19, 2024. (Antara/Muhammad Adimaja)
C
ar production in the country dropped by 11 percent year-on-year (yoy) in September to 101,688 units, in line with a weakening manufacturing purchasing managers’ index (PMI), which gauges business conditions in the sector.
The Association of Indonesian Automotive Manufacturers (Gaikindo) said September’s figure marked a 5.8 percent drop as compared to the previous month.
Gaikindo chairman Jongkie Sugiarto said the weakening manufacturing performance was partially a result of waning consumer purchasing power since the beginning of the year, the weakening of the rupiah against the US dollar and high interest rates.
“People's purchasing power has declined, resulting in lower sales compared to last year, affecting production,” Jongkie said on Sunday, as reported by Bisnis.
The latest manufacturing purchasing managers' index (PMI) report published by S&P Global on Oct. 1 rose slightly to 49.2 in September from 48.9 in August.
This marks the third consecutive month the index has remained below the 50-point threshold that separates expansion from contraction.
At around 44,000 units, Toyota produced the largest chunk of four-wheelers in September. The firm also saw an 11.9 percent yoy decrease in sales.
