Indonesia’s Car Sales Fell 13% in March

Indonesian car sales dropped 10.8 percent during 2019 amid the weak demands and other factors - Photo by Carmudi
JAKARTA (TheInsiderStories) – Indonesian Automotive Industries Association reported the country’ car sales dropped 13 percent to 253,863 units in the first quarter of 2019 compared to the same quarter in 2018. In March the sales lowered 11.4 percent to 90,189 units compared to the previous year, the lowest since 2012, which was 87,917 units.
The association said, Toyota still led with total sales 28,725 unit or 31.85 percent of the total national market. Followed by Daihatsu who was able to sell 19,625 with a market share of 21.76 percent.
In third and fourth positions were held by Mitsubishi and Honda with a market share of 15.6 percent and 9.03 percent respectively. While, Nissan was able to gain a market share of 3.52 percent, up from February which was only 0.4 percent.
This increasing was supported by the performance of Nissan’ car sales in March that reached 3,172 units, up by 825 percent compared to February. It thanks to Nissan’ decision to work with Mitsubishi to launch the All New Livina.
While the growth of Toyota, Daihatsu, and Mitsubishi was in the range of 20 percent on a monthly basis. As for Honda and Suzuki, there was a contraction in sales of 23 percent and 24 percent respectively compared to the previous month.
This year, the organization targeted the national car sales flat with 2018 at 1.1 million units. The chairman Jongki Sugiarto stated, the calculation based on lot of factors like the stagnation of Indonesia’ economic growth and the potential of interest rate hike.
Furthermore, the vehicle segment still lead by multi-purpose vehicle (MPV) type, said Sugiarto, controls 60 percent of the country’ market share. This is in line with the increase in MPV sales by 4 percent last year.
Recently, Indonesian government simplify completely built-up (CBU) vehicles export regulation. There are some easing for exporters in the regulation.
Based on the new policy, exporter can put CBU vehicles into customs loading space area before submitting goods export notice document. While previously, exporter must submit the document prior the vehicles loading.
Other than that, exporter doesn’t need export service note to put the goods into customs area. Revision of quantity and type of goods can also be done at least three days before the shipment. In the last regulation, every requirement must be fulfilled before entering customs area.
By this, Finance Minister Sri Mulyani Indrawati said that company could cut the inventory level by 36 percent. Moreover, logistic cost can be more efficient.
Data from the Association of Indonesian Automotive Industries, CBU exports throughout 2018 grew 14.44 percent to 264,553 units compared to the previous year. This achievement is the highest of previous years.

Since last year to carry out the weakening of Rupiah, Indonesian President Joko Widodo called exporters to bring more US dollars to Indonesia to stabilize the local currency. President wants the entrepreneurs to be able to bring in more US dollars and liquefy it in Indonesia.

Meanwhile, Minister of Industry Airlangga Hartato stressed that one of the projects from the Making Indonesia 4.0 roadmap was the automotive industry, so that Indonesia became the production base of motorized vehicles, both internal combustion engines and electrified vehicles for domestic and export markets.

“Last year, CBU’ car exports were more than 264 thousand units, and in the form of Completely Knock Down around 82 thousand units, so that the total exceeded 346 thousand units with a value of $4 billion and an additional from automotive component exports worth $2.6 billion,” he said.

Reportedly that the trend of exports and imports of Indonesian motor vehicles continued to show 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 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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