Toyota Astra auto and financing units optimistic on sales | Sector data
(The Insider Stories) – Companies owned by automotive giant Astra International (ASII) are optimistic that domestic car sales and auto financing will remain strong despite a weak global economy and a plan by Indonesia’s government to increase fuel prices in May.
National car sales likely steady at 1.1 million
PT Toyota Astra Motor, a joint venture between Astra and Toyota Motor Corp. (TM, 7203) that is Indonesia’s biggest automotive producer, expects auto producers will sell up to 1.1 million cars this year compared with 1.16 million last year, although weak global economic conditions, unstable commodity prices and inflation pressures present risks to that forecast, TAM President Director Jhonny Darmawan is quoted as saying by local media.
Toyota’s car sales increased 27.4% last year to 400,000, more than double their 2007 levels, maintaining Toyota’s position as the biggest auto supplier over the last five years with 30%-40% of the market, according to media reports. Toyota Astra Motor’s sales increased 8.2% to 104,000 units, reports say.
Auto financing likely to maintain strong growth
PT Toyota Astra Financial Services, jointly owned by Astra and Toyota Financial Services expects its auto financing to increase to 11 trillion rupiah ($1.1 billion) this year from IDR8 trillion last year as it finances 65,000 Toyota car purchases, 20% more than last year, president director Buntoro Muljono says in reports. That’s despite the expected fuel price increase and tougher rules governing downpayments on cars.
The most popular models it finances as the Kijang Innova and Avanza MPVs, Fortuner SUV, Yaris hatchback and Corolla and Camry sedans, according to reports.
