Domestic automobile sales increase 20.3%<\/p>\n
JAKARTA (JP): Despite the violence which has marked the
\nongoing election campaign, domestic automobile sales increased
\n20.3 percent during the first four months of this year over the
\nsame period in 1996.<\/p>\n
According to the Indonesian Automotive Industries Association,
\nthe sales of 125,735 vehicles were 7.9 percent higher than
\nrecorded in the same period of 1995, when domestic automotive
\nsales reached their highest level.<\/p>\n
Total domestic automobile sales in 1995 reached 384,449.<\/p>\n
DBS Investment Research and Automotive Analyst Suhari Sargo
\npredicted that automotive sales would rebound toward around
\n380,000 to 400,000 this year after dipping to 337,399 last year.<\/p>\n
"People might speculate that automotive sales would drop this
\nyear because of the election," Suhari said. "But I don't think
\nso. I predict sales would rebound by 20 percent."<\/p>\n
He said part of the reason was the government would relax its
\ntight money policy in this election year to ensure victory for
\nthe ruling Golkar party. This policy would fuel an additional
\nmoney supply and allow people to buy more cars.<\/p>\n
He also contended that this year's increase in auto sales was
\nattributable to the debut of the national car, Timor, on the
\nmarket last October.<\/p>\n
The 1,500cc-engine Timor sedan, exempted from the import duty
\nand luxury tax which make up 60 percent of car prices in
\nIndonesia, sells at Rp 35.75 million (US$14,680), or about half
\nthe prices of comparable Japanese sedans at Rp 70 million.<\/p>\n
Since coming on to the market, Timor has dominated local sedan
\nsales by almost 50 percent even though it lags behind its sales
\ntarget. Average monthly sales are 2,000 Timor sedans, exactly
\nhalf of its target.<\/p>\n
The emergence of inexpensive cars such as Suzuki Baleno and
\nthe launching of new Kijang models early this year would also
\ndrive up auto sales this year, Suhari said.<\/p>\n
Suzuki Baleno has proved to be Timor's toughest competitor,
\nselling around 800 cars per month.<\/p>\n
Baleno, equipped with power windows, a central door-locking
\nsystem, air conditioning, a radio-cassette player and noise
\nreduction system, sells for Rp 43.5 million (US$18,510) off the
\nroad (or Rp 46 million on the road). Although this is slightly
\nhigher than Timor, it is far lower than comparable Japanese cars.<\/p>\n
Toyota Kijang, the most popular multi-purpose vehicle,
\nsuffered a serious setback last year as sales dropped by 28
\npercent to around 50,000 vans. This year, it expects to make
\nstrides following the launching of its newest models.<\/p>\n
An average of 7,000 new Kijangs are sold monthly. This
\nsuccess continued with higher sales of 622 vans last month than
\nMarch's 7,279 vans.<\/p>\n
In addition to the high Toyota Kijang commercial sales, sales
\nof Isuzu and Nissan Diesel vehicles last month also increased by
\nan additional 216 and 76 vehicles respectively over the previous
\nmonth.<\/p>\n
Last month's sales increase of commercial vehicles under PT
\nAstra International's automotive division puts the company in
\nfront in the division with a market share of 53 percent,
\naccording to DBS Investment Research.<\/p>\n
But Astra's performance in the passenger car market was not as
\npromising, with its market share dropping to 21 percent from 23
\npercent in March. Peugeot's sales dropped by almost 50 percent to
\n128 cars last month from 205 cars in March. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/domestic-automobile-sales-increase-203-1447893297",
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