Automaker body lowers sales projection<\/p>\n
JAKARTA (JP): The Association of Indonesian Automotive
\nIndustries (Gaikindo) has lowered its projection on vehicle sales
\nthis year to 60,000 from 100,000.<\/p>\n
Association chairman Herman Z. Latief said yesterday that auto
\nsales would not likely exceed 60,000 this year, a mere 15 percent
\nof the 395,000 vehicles sold last year.<\/p>\n
\"Between January and May this year, only 33,000 vehicles were
\nsold,\" Herman told reporters at an informal lunch meeting.<\/p>\n
\"Assuming that at least 3,000 vehicles would be sold each
\nmonth until December, fewer than 60,000 vehicles would be sold
\nthis year.\"<\/p>\n
A continuing drop in car sales would hurt not only auto
\nassemblers but also supporting industries like spare part
\nsuppliers, he said.<\/p>\n
Even if the country's economy begins a recovery next year, the
\nauto industry may not be in better shape for four or five years,
\nhe said.<\/p>\n
\"Next year, car sales will likely remain below 100,000.\"<\/p>\n
Production would only return to precrisis levels after the
\nindustry fully recovered, he said.<\/p>\n
Most auto firms have virtually stopped production due to
\nsharply declining sales and soaring costs of imported components.<\/p>\n
Herman said the country's auto industry normally produced
\n40,000 cars a month.<\/p>\n
He said automotive supporting industries would face even worse
\nhardships.<\/p>\n
\"Second and third line suppliers of spare parts would sooner
\nor later go bankrupt,\" he said, because they would no longer be
\nable to produce.<\/p>\n
\"If by the middle of next year we begin production again,
\nsupplies of spare parts would have already run out here, so that
\ncar producers would have no choice but to import most of the
\nspare parts again.\"<\/p>\n
On a more positive note, Herman said demand continued for
\nautomobiles, especially commercial vehicles.<\/p>\n
According to data from dealerships, retail car sales were
\ncurrently two to three times higher than Gaikindo's number, he
\nsaid.<\/p>\n
Gaikindo's data is based on wholesale delivery of vehicles
\nfrom manufacturers or assemblers to their dealership.<\/p>\n
The retail sales data was obtained through calculation of
\ndealers' registration invoices sent to manufacturers for each
\nvehicle sale.<\/p>\n
\"This shows that there are still real demands for automobiles
\nout there.\"<\/p>\n
Most of the vehicles were commercial cars, he said, adding
\nthat their purchasers might have be those interested in investing
\nin agribusiness. (das)<\/p>",
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