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)