Interest rate hits auto sales: Analyst<\/p>\n
JAKARTA (JP): Domestic automobile sales tumbled in the first
\nnine months of this year, falling 17 percent over the same period
\nlast year to about 230,000 vehicles, according to the Indonesian
\nAutomotive Industry Association.<\/p>\n
First-category commercial vehicles were worst affected,
\nincluding multipurpose vans such as the Toyota Kijang and Suzuki
\nsidekick. Only 155,670 commercial vehicles were sold, down 20
\npercent, according to the association.<\/p>\n
Automotive analyst Suhari Sargo said yesterday the drop was
\ncaused by tight monetary policy rather than by the government's
\nnational car policy.<\/p>\n
\"Commercial vehicles in the first category are the most
\npopular automobiles here. Sales of vehicles in this category
\ndropped seriously because of the government's efforts to reduce
\nthe public's liquidity,\" Suhari said.<\/p>\n
But the government's attack on liquidity has not seriously
\naffected sedan sales, which remained flat in the first nine
\nmonths of this year. Approximately 27,000 cars were sold.<\/p>\n
\"People buying sedans are mostly in middle and high-income
\nbrackets, and therefore their car-buying patterns were not
\naffected by tightening liquidity,\" Suhari said.<\/p>\n
He acknowledged the launch of the Suzuki Baleno, Bimantara
\nCakra and Bimantara Nenggala sedans, with prices closer to first-
\ncategory commercial vehicles, had stolen some of the market from
\nthe commercial vehicles.<\/p>\n
First-category commercial vehicles, which are mostly used as
\npassenger vehicles, make up more than 60 percent of the country's
\nauto market. Sedans make up less than 10 percent of the market.<\/p>\n
Trucks<\/p>\n
Suhari said sales of third-category commercial vehicles, heavy
\ntrucks, had fallen 30 percent to some 8,700 units.<\/p>\n
Because of tightening monetary policy, people wanting to buy
\nheavy trucks have canceled their plans and bought cheaper second-
\ncategory commercial vehicles instead, Suhari said.<\/p>\n
Sales of second-category commercial vehicles, light trucks and
\nmultipurpose commercial vans, remained steady at 36,900 units.<\/p>\n
Suhari said the entrance of duty-free national cars, Timor
\ncars, from South Korea failed to stimulate the auto market.<\/p>\n
Some 8,000 Timor cars, produced by Kia Motors Corp. of South
\nKorea for PT Timor Putra Nasional, have entered the country. But
\nonly about 1,000 of the cars have been delivered to customers.<\/p>\n
\"It shows that Timor cars have not yet won the hearts of most
\nIndonesian auto users,\" Suhari said. (rid)<\/p>",
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