Domestic car sales increase 82.5%

JAKARTA (JP): Total domestic car sales surged by 82.5 percent to 8,610 cars in July from 4,719 in June, according to a report released by the Association of Indonesian Automotive Industries (Gaikindo).

The increase derived mainly from the sale of commercial vehicles, which rose 96 percent to 7,881 in July from 4,008 in June, the report said.

Sales in passenger cars showed a 2.5 percent increase to 729 from 711, the report said.

A noted automotive analyst, Suhari Sargo, said the increase reflected an improvement of the people's confidence in the country's political situation.

In May, automotive sales decreased 24 percent because most potential buyers delayed purchasing on fears of possible unrest ahead, during and after the June general election, Suhari said.

He added that in June, car sales rose 20 percent as fears that there would be unrest during the general election were proven untrue.

Besides the improvement in the people's confidence in the country's security situation, the sharp increase in car sales in July was also attributed to a strengthening of the rupiah against the U.S. dollar and a sharp drop in bank deposit rates.

"Many multifinance companies have started their car-purchase financing activities following the sharp drop in interest rates," he said, adding that most of the country's multifinance companies had stopped their financing operations due to the sharp increase in interest rates.

PT Astra International, which sells Daihatsu, Isuzu, Toyota, Nissan Diesel, BMW and Peugeot in Indonesia, dominated car sales by selling 4,194 in July, comprising 4,040 commercial cars (including family vans) and 154 passenger cars.

Suzuki's sales showed a growth of 178 percent to 1,242 cars in July. However, the highest was Mitsubishi with total sales of 2,408 cars from 1,394 last month, followed by Toyota with 2,389 cars from 1,212.

The highest sales in passenger cars was still held by PT Timor with 200 cars from 163 last month, due to the its competitive sedan prices.

PT Timor has been leading passenger car sales since March, except in June, when Honda led with 186. Honda, however, experienced a 60 percent decrease to 74 cars in July.

Suhari predicted another slump in domestic car sales in October, prior to the presidential election.

"Nevertheless, I am sure that domestic car sales could, at least, reach the same level as last year of around 60,000," he said, providing the condition remained stable until the end of the year.

The association's initial target of domestic sales for 1999 was 50,000 cars, and it has increased the estimate by 10,000 due to promising sales result in the first half of 1999 with 22,879.

In 1998, car sales slumped to 58,000 due to the economic crisis and a fear of unrest.

Total domestic sales from January to July 1999 amounted to 31,389, comprising 27,009 commercial car and 4,480 passenger cars.

Sales were lower by 22.83 percent for the same period last year of 40,803.

Car exports increased by 17.6 percent to 1,958 in July, bringing total exports for the last seven months to 16,916 cars.

Total exports and domestic sales for July totaled 10,568 cars, and for the first seven months of 1999 reached 48,405 cars.

The Gaikindo report shows motorcycle sales of 35,171 in July, a slight decrease from 35,242 in June, bringing total sales for the first seven months of 1999 to 212,729 motorcycles.

The highest seller was the Honda motorcycle by Astra reaching 17,670 in July up from 16,839. (02)