Gaikindo upgrade 2002 car sales forecast

Gaikindo upgrade 2002 car sales forecast

The Indonesian automakers association (Gaikindo) has revised upward its forecast for domestic vehicle sales to 320,000 units this year from initial predictions of 300,000, as the economy continues to show signs of stability.

Gaikindo chairman Bambang Trisulo was quoted by Antara as saying Tuesday that the strengthening of the rupiah against the U.S. dollar would increase car sales in the country.

He added that the lower inflation level was also a positive factor in boosting consumer confidence.

The rupiah has been strengthening since the beginning of this year and now hovering at its nine-month high of Rp 8,740 per dollar. Meanwhile, year-on-year inflation has been on a declining trend during the past couple of months.

Vehicle sales increased by 15 percent in the first five months of the year to 130,500 units from the same period last year. -- JP