Car sales continue to grow in RI

Car sales continue to grow in RI

The Indonesian automotive market is on course for a record year of 380,000 cars.

Sales have been consistently strong throughout the first three quarters of the year, and the current rate only needs to be maintained in the final quarter for the 380,000 target to be achieved.

The 1995 estimate was revised midyear by the Indonesian Automotive Federation, Gaikindo, from 350,000, as a result of the market's performance in the first six months.

The final figure will be substantially up on 1994's result of 326,471.

That total was, in turn, a big improvement on 1993's 214,298.

Industry analysts say that the big increases are likely to continue, as long as Indonesia's economy maintains its strong growth.

The market's health has surprised the newest player, Korea's Daewoo.

Demand for the company's Espero sedan, which was launched in September, has been excellent.

Public Relations Manager Eliza Lee Lokman said the company had been expecting its sales to be split four to one in favor of its base model, the CD.

However, the reverse has been the case, with customers preferring the more expensive luxury edition.

As a result, Daewoo is experiencing a shortage of the luxury edition's leather and wooden panels.

More than 520 cars have been sold so far and 75 percent have been luxury editions.

Next year, the smaller Nexia sedan will join the Espero.

Production at the company's assembly plant is being increased and plans are being advanced for the construction of a major factory at Karawang, which is due for completion in 1998, when it will have an annual capacity of 50,000 cars.

Sometime late in 1996 or early 1997, Daewoo also plans to introduce the BH115 luxury bus, to cater for the tourism market.

Total vehicle sales, all categories.

Jan Feb Mar Apr May Jul Aug Sept 30,940 27,698 26,338 31,568 33,404 34,094 34,544 33,492

* Source: Gaikindo