Indonesia' car sales rose by 9.9 percent to 53,884 units in November from the previous month and fell by 41 percent compared to a year ago - Photo by Carmudi

JAKARTA (TheInsiderStories) – Indonesia’ car sales rose by 9.9 percent to 53,884 units in November from the previous month and fell by 41 percent compared to a year ago, the Association of Indonesian Automotive Industries (GAIKINDO) reported on Tuesday (12/15). In October, the national auto sales recorded 49,018 units and in November 2019 sold 91,240 units.

Based on the organization’ data, the auto sales for the 11 months period reached 474,908 units, a sharp drop by 50 percent compared to the same period in 2019 about 942,462 units. Throughout 2019, the national car sales reached 1.03 million units.

Major producer, Toyota was still the largest contributor to the auto sales in November, amounting to 15,479 units. Its competitor, Mitsubishi moved into the second place overtaking other PT Astra International Tbk (IDX: ASII)’ other car-maker, Daihatsu.

The Japanese manufacturer has sold 8,743 units of car, Honda with 8,448 units, Suzuki 8,217 units, and Daihatsu 6,772 units. According to GAIKINDO, the COVID-19 pandemic still has an impact on sluggish car sales in Indonesia.

The secretary general of the association, Kukuh Kumara, emphasized, that the pandemic had an impact on the cessation of automotive dealers and factory operations. He considered that the recovery of the pandemic was the key to the revival of car production and sales also the support of the funding sector considering that more than 70 percent of car purchases using this facility.

To help the low 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.

Last month, the central bank reported, the monthly retail sales improved, reflected in the November 2020 Real Sales Index (IPR) which grew by -0.4 percent. The number higher than the growth in October 2020 of -5.3 percent (MoM).

This improvement was driven by sales of a number of goods groups, such as spare parts and accessories and the clothing sub-group, which grew positively in line with the increasing demand ahead of the Christmas and New Year’ holidays.

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