Gaikindo revises car sales to 550,000 on robust demand

Gaikindo revises car sales to 550,000 on robust demand

The Jakarta Post, Jakarta

Robust domestic demand on vehicles has prompted the Association
of Indonesian Automotive Manufacturers (Gaikindo) to revise its
car sales growth target from 520,000 to 550,000 units this year.

"Car sales these days have shown a positive trend despite the
fact of increasing global steel and oil prices," Gaikindo
chairman Bambang Trisulo said in a statement.

He added that industry players should increase efficiency and
reduce high production costs to overcome increasing prices.

Gaikindo said that the projected sales increase was due to the
increasing demand of 4x2 MPVs (multi purpose vehicles) or
minibuses, easier procedures to obtain vehicle loans, and the
consumers increasing purchasing power.

Apart from rising passenger cars sales, Gaikindo also recorded
an increase in commercial vehicle demand due to the country's
improving economy and the construction of infrastructure
projects.

The association also said that demand for four-wheel drive
double-cabin vehicles has also increased following the increasing
demand for such cars in tsunami-stricken Nanggroe Aceh
Darussalam.

Gaikindo recorded a 36 percent increase in sales of 195,224
units in the January to April period, compared to the
corresponding period sales of 143,434.

In April alone, the association recorded increased sales of
28.8 percent to 51,264 units this year compared to the same month
last year of 39,813. (002)