JAKARTA (TheInsiderStories) – Indonesian car sales dropped by 48.35 percent during 2020 depressed by the COVID-19 pandemic, the Association of Indonesian Automotive Industries reported today. During of last year, the car-maker only sold 532,027 units from 2019 around 1.03 million units
Based on the organization data, the worst auto sales occurred in April since the crisis in 1998, only sold 7,868 units or subsided by 90.63 percent compared to April 2019, which recorded 84,056 units. While, the highest sales happened in January, when sales touched 80,435 units in a month.
In detailed, passenger car sales such as sedans, 4X2, 4X4, still dominate with a percentage of 73.1 percent or 388,886 units. Then, the commercial vehicle sales increased 26.9 percent or 143,141 units. The Japanese brand’ Toyota remained in the first rank of four-wheeled sales in Indonesia.
During 2020, Toyota was able to sell more than 160,000 units of cars and kept the brand owned by PT Astra International Tbk (IDX: ASII) in the first position as the best-selling brand in 2020. In second place, Rush with 34,528 units (18.9 percent contribution to Toyota’ sales) and Kijang Innova with 29,952 units (16.4 percent contribution to Toyota’ sales).
This year, the association hope the automotive market will recover than last year and could sell 750,000 units of car. To boost the public purchasing power and national economic recovery, President Joko Widodo’ administration has prepared Rp372.3 trillion (US$26.59 billion).
To help the weak of purchasing power and the consumer loans market, Bank Indonesia (BI) has decided to lower the down payment limit for motorcycles and unproductive three-wheeled vehicles from 10 percent to zero percent. The three-wheeled vehicles or more that are productive also cut to zero percent from the original 5 percent and will take effect from Oct. 1, 2020.
The governor, Perry Warjiyo, said the decision has been made to boost the public consumption and to accelerates the economic growth of the country. Based on the central bank data, the inflation remains low due to weak domestic demand.
In addition, the Financial Services Authority (FSA) also plans to give an incentives for the purchasing and credit distributions for the electric vehicle (EV) in Indonesia. The agency provided the incentives in the form of providing funds to debtors for the purpose of purchasing EV or developing upstream industries, such as batteries, charging station industries, and component industries that can categorized as fulfilling the provisions for the implementation of sustainable finance.
Provision of funds for the purchase of EV and their infrastructure can be categorized as a government program that is exempted from the maximum credit limit, if its guaranteed by state-owned and local government or insurance financial institutions, inline with the FSA regulation No. 38/POJK.03/2019, concerning the Legal Lending Limit and Large Funds Provision.
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