Car sales up 7.5% in first quarter

Car sales up 7.5% in first quarter

The Jakarta Post, Jakarta

A stronger rupiah and a better political outlook have pushed
year-on-year car sales up by some 7.5 percent to 73,900 units
during the first three months, according to estimates by the
Association of Indonesian Automotive Industries (Gaikindo).

The association's chairman Bambang Trisulo said on Tuesday
that if the favorable conditions continued, total sales might
climb to 310,000 units compared to 300,000 a year earlier.

Gaikindo preliminary sales figures showed car sales in March
rising 25 percent to around 28,500, up from 22,700 in February.

Explaining the sharp rise, Bambang said the March figures
included delayed sales from the month before, when heavy floods
in several cities disrupted deliveries. Sales in February were
recorded flat at 22,700 units he said.

"Growth has been normal so far, but we have upgraded our
projection to around 310,000 (cars) should the rupiah maintain
its current strength and the political outlook remain good," he
told The Jakarta Post.

Late last year Gaikindo projected 2002 car sales at 280,000
assuming the rupiah stayed at 10,000 to the U.S. dollar.

However, on Monday the rupiah rose to its highest level in
eight months as it hit 9,415 to the dollar compared to 10,200 in
January.

Bambang said the rupiah's bullish trend would improve car
sales.

But he added that the stronger currency would be unlikely to
push car prices down until after two months had passed.

"There is a psychological effect if the dollar goes cheap," he
explained.

Bambang said the political outlook had improved compared to
the first half of 2001, which was marred by political infighting
and security problems up until former president Abdurrahman
Wahid's ouster.

"At this moment we don't see the political rivalry leading to
unrest. So that is a good sign," he said.