Gaikindo reports 34% increase in sales

The Association of Indonesian Automotive Manufacturers (Gaikindo) reported domestic car sales increased 34.4 percent in the first five months of this year from the same period last year to 246,443 units from 183,348.

In its monthly report, the association said car sales in May rose 28.2 percent year-on-year to 51,218 units from 39,949 units in the same month last year.

The association said 4x2 MPVs dominated sales in May with 31,280 units, a 35 percent increase from 23,181 units in May 2004.

It said rising sales were the result of people's improved purchasing power, as well as easier procedures for buying cars on installment.

Gaikindo chairman Bambang Trisulo said in a statement the association was upbeat this year's sales target of 550,000 vehicles would be reached.

Apart from rising sales of passenger cars, Gaikindo also recorded a 19 percent increase in commercial vehicle sales from 13,199 units in May 2004 to 15,658 in May this year. It attributed this increase to the country's improving economy and the launch of more infrastructure projects.

The association also said demand for four-wheel drive double- cabin vehicles had increased based on higher demand for such vehicles in tsunami-stricken Aceh.

For the export of completely built-up (CBU) vehicles, Gaikindo recorded a whopping 451 percent year-on-year increase to 5,056 units from 918 units in May 2004. Completely knocked-down (CKD) exports rose 84 percent from 21,131 units in May 2004 to 38,856 units last month. -- JP