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Weak car sales take toll on BCA Finance’s first half revenue
PT BCA Finance booked Rp 16.36 trillion (US$954.28 million) in revenue in the first half, a 5 percent decline year-on-year.
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The Wuling SUV, known as the Baojun 530 in China, is on display at the GIIAS car exhibition at the Indonesia Convention Exhibition (ICE) compound in Tangerang in August 2018. Multifinance company PT BCA Finance reported a decline in its revenues during the first half amid sluggish car sales. (JP/R. Berto Wedhatama)
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luggish car sales have taken a toll on multifinance company PT BCA Finance, which reported a revenue decline in the first half of the year.
The automotive financing subsidiary of private lender Bank Central Asia (BCA) booked Rp 16.36 trillion (US$954.28 million) in sales during the first half, a 5 percent decline from the same period last year, president director Roni Haslim said in Jakarta on Thursday, last week.
He attributed the decline in financing to sluggish car sales throughout the year.
According to the Association of Indonesian Car Manufacturers (Gaikindo), car sales fell 13.5 percent to 660,288 vehicles from January-August, from 763,444 during the same period last year.
Finance director Amirdin Halim also added that the car sales slump had actually been felt since the second half of last year, as most businesses had been in wait and see mode ahead of the April 2019 elections.
He said the company expected new car sales to remain slow until the end of the year, as the global economic slowdown could also affect the Indonesian economy.
“With the current economic trend, we don’t want to be too expansive this year, that’s why we project our financing stay stable for around Rp 33 trillion,” he said during a press briefing in Jakarta.
