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Jakarta Post

Analysis: ASEAN automotive sector hits brakes, faces long road to recovery

  • Astari Adityawati


Jakarta   /   Wed, October 14 2020   /  01:00 am
Illustration of a car factory(Shutterstock/File)

The COVID-19 pandemic has led to a slowdown in the automotive industry across the world, especially in ASEAN countries. Before the pandemic, Indonesia had a dominant position in the ASEAN automotive market. As COVID-19 hit in late February, the country dropped to fifth position. One of the reasons, according to the Association of Indonesian Automotive Manufacturers (Gaikindo), Indonesia was quite late in responding the pandemic compared to Thailand, Malaysia, the Philippines and Vietnam. However, we have to be aware that Indonesia’s population and geography are very different from that of those countries. The handling of the outbreak requires much more time and large funds because the population is large and scattered over thousands of islands. In 2019, Indonesia’s domestic car sales reached 1.03 million units, the highest sales in ASEAN. While in second place was Thailand...