span lang="EN-US" style="mso-ansi-language:EN-US">Automotive giant Astra International predicts that the automotive market will stagnate next year amid mixed signals in the macro economy.
Toyota-Astra Motor executive general manager Fransiscus Soerjopranoto said on Friday that the maximum attainable growth for four-wheeled vehicles would be around 6 percent, up to a total of 1.24 million cars in 2017.
He said positive signals came from the success of the tax amnesty program and recovering commodity prices. Higher economic growth will increase consumption, including for cars.
"However, we must be aware of the new US government's policies. So far we have predicted that it may correct our economic growth," Fransiscus said during an Astra International media gathering in Bogor.
He added that if the correction was mild, car sales could still grow by 4.16 percent, equating to a total 1.13 million vehicles next year.
Fransiscus said that with a relatively stagnant market, the strategy was to defend market share. Currently, Astra International's best brands Toyota and Daihatsu have market shares of 36 and 18 percent, respectively.
Meanwhile, in the motorcycle market, Astra Honda Motor predicted the 2016 market would be down by 8 percent to 5.96 million and stagnant for the next year.
General affairs director Markus Budiman Widihandojo said the company’s focus was to gain a greater market share by having products in all segments.
"Our market share as of October was 73.6 percent, the highest in the company’s history," Markus said. (jun)
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