The Association of Indonesia Automotive Industries (GAIKINDO) reported, the national car sales slightly dropped from 80,424 units to 79,573 unit in February - Photo by Gaikindo

JAKARTA (TheInsiderStories)  – The Association of Indonesia Automotive Industries (GAIKINDO) reported, the national car sales slightly dropped from 80,424 units to 79,573 unit in February. During two months period, the automotive sales recorded 155,997 units from the same period in 2019 at 163,964 units, or down 4.86 percent.

Based on the official data released on Monday (03/16), major producer, PT Astra International Tbk (IDX: ASII) still dominate, with market shares 51 percent. Second position hold by Honda 11,373 units (14.29 percent), Mitsubishi 10,903 cars (13.70 percent), Suzuki 8,613 units (10.82 percent), others 4,774 cars (5.99 percent), and others 845 units (1.06 percent).

This year, co-chairman of  GAIKINDO Jongkie D. Sugiarto projects, the automotive sales only grow single digit from 1.03 million units to 1.05 million units . But PT Toyota Astra Motor manager, Fransiscus Soerjopranoto, sees that car sales in 2020 will not be better than last year.

According to the analysts, car sales still have an opportunity to rise double digits if the economy grow by around 7 percent. They expect that throughout 2020, discount wars will decrease significantly because the producers are beginning to maintain their profit margins.

To support the domestic car sales, GAIKINDO appreciated the government’ initiative to simplify the rules for importing electric cars which are considered to be able to open investment opportunities entering Indonesia.

Last year, President Joko Widodo has signed the electric vehicle rule to help the automotive industry. In addition, the government has supported the manufacturer by give more incentives for exporters. The procedure simplification its expect could improve Indonesian export and slender trade balance deficit.

Reportedly, that the trend of exports and imports of Indonesian motor vehicles continued to show an improvement in the past five years. In 2014, exports were recorded at 51.57 percent and imports amounted to 48.43 percent. In 2015, exports reached 55.40 percent and imports amounted to 44.60 percent.

Furthermore, in 2016 total exports amounted to 61.40 percent and imports amounted to 38.60 percent. Then, in 2017, exports were recorded at 53.16 percent and imports amounted to 46.84 percent. Finally, in 2018, exports were recorded at 63.56 percent and imports by 36.44 percent.

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Written by Staff Editor, Email: theinsiderstories@gmail.com