Domestic automobile sales increase 20.3%

Domestic automobile sales increase 20.3%

JAKARTA (JP): Despite the violence which has marked the
ongoing election campaign, domestic automobile sales increased
20.3 percent during the first four months of this year over the
same period in 1996.

According to the Indonesian Automotive Industries Association,
the sales of 125,735 vehicles were 7.9 percent higher than
recorded in the same period of 1995, when domestic automotive
sales reached their highest level.

Total domestic automobile sales in 1995 reached 384,449.

DBS Investment Research and Automotive Analyst Suhari Sargo
predicted that automotive sales would rebound toward around
380,000 to 400,000 this year after dipping to 337,399 last year.

"People might speculate that automotive sales would drop this
year because of the election," Suhari said. "But I don't think
so. I predict sales would rebound by 20 percent."

He said part of the reason was the government would relax its
tight money policy in this election year to ensure victory for
the ruling Golkar party. This policy would fuel an additional
money supply and allow people to buy more cars.

He also contended that this year's increase in auto sales was
attributable to the debut of the national car, Timor, on the
market last October.

The 1,500cc-engine Timor sedan, exempted from the import duty
and luxury tax which make up 60 percent of car prices in
Indonesia, sells at Rp 35.75 million (US$14,680), or about half
the prices of comparable Japanese sedans at Rp 70 million.

Since coming on to the market, Timor has dominated local sedan
sales by almost 50 percent even though it lags behind its sales
target. Average monthly sales are 2,000 Timor sedans, exactly
half of its target.

The emergence of inexpensive cars such as Suzuki Baleno and
the launching of new Kijang models early this year would also
drive up auto sales this year, Suhari said.

Suzuki Baleno has proved to be Timor's toughest competitor,
selling around 800 cars per month.

Baleno, equipped with power windows, a central door-locking
system, air conditioning, a radio-cassette player and noise
reduction system, sells for Rp 43.5 million (US$18,510) off the
road (or Rp 46 million on the road). Although this is slightly
higher than Timor, it is far lower than comparable Japanese cars.

Toyota Kijang, the most popular multi-purpose vehicle,
suffered a serious setback last year as sales dropped by 28
percent to around 50,000 vans. This year, it expects to make
strides following the launching of its newest models.

An average of 7,000 new Kijangs are sold monthly. This
success continued with higher sales of 622 vans last month than
March's 7,279 vans.

In addition to the high Toyota Kijang commercial sales, sales
of Isuzu and Nissan Diesel vehicles last month also increased by
an additional 216 and 76 vehicles respectively over the previous
month.

Last month's sales increase of commercial vehicles under PT
Astra International's automotive division puts the company in
front in the division with a market share of 53 percent,
according to DBS Investment Research.

But Astra's performance in the passenger car market was not as
promising, with its market share dropping to 21 percent from 23
percent in March. Peugeot's sales dropped by almost 50 percent to
128 cars last month from 205 cars in March. (rid)