Motorcycle sales to exceed precrisis level in 2002<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Looking at the improved economic situation, the Indonesian
\nMotorcycle Industry Association (AISI) predicts that motorcycle
\nsales will surpass the two million mark this year,<\/p>\n
Association chairman Ridwan Gunawan predicted that sales would
\nincrease by 10 percent to about 2.1 million motorcycles this
\nyear, surpassing the precrisis sales level of 1.85 million units.<\/p>\n
\"At a conservative level, a 10 percent sales growth is logical
\nthis year,\" Ridwan said in a statement, adding that AISI members
\nplan to produce a total of two million motorcycles.<\/p>\n
AISI groups agents and assemblers of popular Japanese brands
\nsuch as Honda, Yamaha, Suzuki and Kawasaki as well as Italy's
\nPiaggio Vespa.<\/p>\n
Producers of Chinese motorcycles, which started to challenge
\nthe domination of Japanese motorcycles in the country after the
\neconomic crisis, are not members of the association.<\/p>\n
AISI said that as of November last year its members recorded
\ndomestic sales of 1,571,426 motorcycles, higher than the 898,572
\nunits over the same period in 2000.<\/p>\n
\"Sales were strong in December 2001 but due to the shorter
\nproduction days, total sales for 2001 probably reached 1.67
\nmillion units,\" he said.<\/p>\n
The association projected that total domestic sales, including
\nthose from outside AISI members, would reach around 1.8 million
\nunits in 2001.<\/p>\n
Motorcycle sales of AISI's members dropped to their lowest
\nlevel of 492,626 in 1998 from 1.85 million in 1997 as the country
\nsuffered the pinch of its worst economic crisis.<\/p>\n
Motorcycles' sales started to recover in 1999, with total
\nsales of 587,402 units.<\/p>\n
Sales further increased to 979,000 motorcycles in 2000,
\ndespite the entry of several Chinese brands into the domestic
\nmarket.<\/p>\n
At least 57 brands of Chinese motorcycles have entered the
\nIndonesian market since the government eased regulations on the
\nimportation of completely built-up motorcycles in late 1999.<\/p>\n
Ridwan predicted that total imports of built-up motorcycles
\nwould reach 250,000 units this year, of which about 150,000 units
\nwould come from China.<\/p>\n
He said that the implementation of the World Trade
\nOrganization agreement would make it difficult for Chinese
\nmotorcycle producers to export more products to Indonesia.<\/p>\n
\"So the imports of motorcycles from China will not be too
\ndominant while intra-ASEAN trade will increase following the
\nimplementation of the ASEAN Free Trade Area (AFTA) this year,\" he
\nsaid.<\/p>\n
Under the AFTA scheme, three ASEAN countries -- Indonesia,
\nThailand and the Philippines -- will open their markets for
\nautomotive products that meet local content requirement with
\nlower import tariffs of between zero and 5 percent.<\/p>\n
Ridwan added that AISI members planned to export around
\n150,000 motorcycles this year.<\/p>\n
Indonesia exports its motorcycles mainly to Vietnam, the
\nPhilippines, Argentina and Brazil.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/motorcycle-sales-to-exceed-precrisis-level-in-2002-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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