Indonesia: Car sales target of 1.1 million have been revised to 1.06 million, according to the Association of Indonesian Automotive Industries (Gaikindo).
According to the figures released by Gaikindo, for January to October 2017, a total of 898,218 cars were sold in Indonesia, the largest car market in Southeast Asia. This was a 2.5 percent year-on-year increase from the nation’s car sales figure in the same period in 2016. Association chairman Jongkie Sugiarto said the Indonesian economy has not shown significant acceleration in 2017 and therefore consumers’ purchasing power has not improved markedly.
Of note was that sales growth of more expensive car models was higher than sales growth of those vehicles that are more affordable. Fransiscus Soerjopranoto, executive general manager at Toyota Astra Motor, added that tighter policies surrounding car credit may have been a reason for the mild sales growth this year.
Due to rising non-performing loan ratios at financial institutions, they have become more cautious when disbursing credit to consumers, especially for cars that are priced below IDR 200 million (US$15,000). Mr Soerjopranoto added that the majority of car sales in Indonesia involve deals that are priced below IDR 200 million, which include the popular low cost green car models.