Automobile sales receive boost from seasonal festivities, bonuses
Automobile sales receive boost from seasonal festivities, bonuses
Sandy Darmosumarto, The Jakarta Post, Jakarta
Some of the factors that may explain the correlation between
the rise in car sales and the occurrence of three festive
occasions, namely Idul Fitri, Christmas and New Year, concern
activities and pay bonuses related to these occasions.
"In general, sales increase relatively with the approach of
Idul Fitri, but trends differ by segment," said Teddy Irawan,
deputy director of national sales at Nissan Motor Indonesia.
With families going back to their hometowns outside Jakarta to
celebrate Idul Fitri, it is to be expected that small-to-medium-
sized minivans gain in popularity.
Overall, there is a positive trend in minivan sales in the
lower segments of the market. This may reflect the public's
choice of minivans for holiday travel in this particular market
segment.
The combined market share of low-segment, 4x2 minivans is 76.8
percent. October sales of Daihatsu Zebras rose by 32.5 percent
while those of the Suzuki Carry rose by 0.5 percent. However,
sales of Mitsubishi Jetstars (T-120) declined by 13 percent.
Teddy said, "there is a tendency for sales in the middle-to-
upper segments to rise during Idul Fitri, though not as
significantly as in the lower segment. Sales in the middle-to-
upper segment are relatively stable."
Market data depicts an overall rise in sales of passenger
vehicles in the medium segment 4x2 market compared with
September's figures. This fact is mostly attributed to the
popularity of the Mitsubishi Kuda.
In October alone, the Kuda experienced a growth of 74.7
percent in sales. The Toyota Kijang and Isuzu Panther recorded a
combined sales increase of 18.7 percent.
Other middle segment 4x2s, such as the Daihatsu Taruna, Suzuki
Aerio and Escudo, as well as the Mitsubishi L300 minivan,
experienced a decline in sales. However, their combined market
share of 15.9 percent is way below the combined 72.4 percent
enjoyed by Kijang, Kuda and Panther vans.
Data on upper segment minivan and 4x2 vehicles indicates mixed
trends. Overall, sales in upper-segment minivans increased.
The CRV, which took 33.2 percent of the upper segment 4x2
market, experienced shrinkage of 23.1 percent. Meanwhile the
combined market share of all brand competitors reached 59.6
percent.
"In the middle-to-upper segment, the rise in sales is mostly
attributed to end of year sales, not Idul Fitri, and companies
using up their budgets," Teddy said. However, the rise in sales
may also be attributed to the wide availability of zero-percent
loan schemes.
"Logically, holiday bonuses do not bring in enough money to
purchase a new vehicle. I attribute most of the increase in sales
during Ramadhan to a psychological 'need' by consumers to drive a
new vehicle," commented Teddy.
The rise in October sales trend in all segments may have
surprised market observers who expected sales in the middle-to-
upper segment to be stable relative to those in the middle-to-
lower segment.
The data shows a slightly different overall trend in the sedan
market. The lower and upper segments experienced a rise in sales,
while the upper segment was stable. Sales of sedans in the medium
segment were highlighted by the exceptional performance of the
Toyota Vios, which achieved growth of 55.2 percent and captured
40.5 percent of the October mini-sedan market.
Stable sales figures that are independent of festive occasions
were also found in the premium market segment for minivans and
4x2 markets. However, the premium sedan segment experienced a
growth in sales.
"Target markets for premium cars are very specific where a
rise in sales at the end of the year is not felt," said Wanny
Bhakti, head of public relations for Audi's Garuda Mataram Motor.
"There has never been an instance of sales increasing with the
approach of Idul Fitri or other holidays."
The rise in sales in October has been usual over the past few
years when Idul Fitri and Christmas have been clustered together.
Hendrayadi Lastiyoso, manager with Toyota-Astra Motor, stated,
"overall, the quarterly seasonal index on sales from year to year
has remained the same." He expected sales would further increase
at the end of the year.
In contrast, Teddy expected sales in December to decline as
usual because people tend to hold off purchasing until the next
year. "Even if people do purchase, vehicle registration is
completed in January."