Indonesian Political, Business & Finance News

Car Sales Seen Back to Record Levels

| Source: GOI
Car and truck sales are on track to return to record levels of more than half million units next year, powered by a recovery in the economy, the Indonesian Automotive Industry Association (Gaikindo) said.

Vehicle sales are expected to top more than 400,000 units this year, recovering from a more than 40% slump in 2006 when sales sagged to 318,883 units amid a jump in interest rates, it said, according to Reuters.

"Conducive economic conditions have helped the recovery in the automotive industry," Gaikindo official Johnny Darmawan said on Thursday (19/7/07) while opening a motor show.

"If the economic recovery continues, we are optimistic domestic sales can reach 500,000 units in 2008," he said, adding that exports of completely built-up vehicles may hit 50,000 units this year.

Vehicle sales hit a historic high of 533,910 units in 2005, when Indonesian interest rates were at a record low, but fell sharply after the government decided to hike fuel prices late that year.

Industry Minister Fahmi Idris said exports of completely-built-up (CBU) cars in the first five months of 2007 reached volume of around 21,000 units, up some 90% from the corresponding period last year, Asia Pulse reported.

Speaking at the opening of an international motor show, Idris said full-year CBU car exports would reach around 50,000 units, up by 50% compared to last year.
Tags: business
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