Automobile sales likely to increase by 20 percent

Automobile sales likely to increase by 20 percent

JAKARTA (JP): Domestic automobile sales are estimated to increase by 20 percent to about 385,000 units this year, an executive said.

Chairman of the Indonesian Automotive Industry Association (Gaikindo) Herman Z. Latief said on Friday that automotive sales increased by 50 percent to 320,000 units last year from 210,000 units in 1993.

Total sales declined from 274,603 units in 1990 to 263,073 in 1991, and then again to 171,900 in 1992. Automobile sales rallied back to 210,000 in 1993.

"We base our estimate on the sales of sedans and commercial vehicles during the first 10 months, which exceeded 314,858 units," Herman said.

He projected growth in sales will level-off next year to only four percent or about 400,000 units.

Some 90 percent or 350,000 of the vehicles sold this year had Japanese trademarks -- Toyota, Honda, Mitsubishi, Daihatsu, Suzuki and Isuzu.

Kompas daily reported over the weekend that Astra Group, which produces Toyota, Honda, Daihatsu and Isuzu vehicles, continues to dominate the market with the sale of 200,000 vehicles this year.

The Indomobil Group, the producer of Suzuki, Nissan, Mazda and Volvo automobiles, clinched second place with sales of 80,000 units this year. It is followed by PT Kramayudha Tiga Berlian, the producer of Mitsubishi vehicles, with 75,000 sales.

The remaining market share is divided among 21 makes, including newcomers Hyundai and Daewoo.

Herman, who is also Vice President of Kramayudha Tiga Berlian, was quoted by Antara Saturday as saying that the slower growth of automobile sales in 1996 will be caused by a decrease in demand. (kod)