Indonesian car sales post all-time record
Indonesian car sales post all-time record
JAKARTA (JP): Automobile sales in Indonesia are expected to
reach an all-time record of 320,000 units this year, up by more
than 50 percent from last year, the industry's association
announced yesterday.
"We have based our estimates on actual sales during the first 11
months, which exceeded 295,160 units," said Sumitro, an executive
of the Association of Indonesian Automotive Industries (GAIKINDO).
Sumitro attributed the sharp sales increase to robust economic
growth and the expansion of bank credits with net interest rates of
18-20 percent a year.
He said around 80 percent of the sales were credit-based and only
20 percent involved cash payments.
"We are equally upbeat about next year's prospects though the
sales growth may reach only around 20 percent," Sumitro added.
The previous high of 274,603 units sold was in 1990. Car sales
then declined to 263,073 in 1991 and 171,900 in 1992 before rising
again to 210,000 in 1993.
The association's chairman, Herman Latief, said the sales record
was much higher than what the association had estimated.
"Our estimate early this year was 230,000 units. But we revised
the sales estimates to 265,000 units in the second quarter after
seeing brisk sales during the first quarter," Latief added.
Commercial vehicles accounted for 87.48 percent of the total
sales and passenger cars for the remaining 12.52 percent.
About 95 percent of the cars sold consisted of Japanese makes,
notably Toyota, Mitsubishi, Daihatsu, Suzuki and Isuzu.
"This composition was responsible in part for the rising prices
of automobiles in the country," Latief said, referring to the yen
appreciation against the American dollar.
The deregulation of the automobile industry in June 1993,
apparently has not yet succeeded in rationalizing the number of car
makes assembled.
Makes
There are now more than 26 makes of automobiles assembled
locally. Since the five Japanese makes account for 95 percent of
the total sales, the other 21 brands together were responsible for
less than 15,000 of the units sold.
The association confirmed that two Korean car makes, Hyundai and
Kia, will enter the domestic market sometime next year, thereby
making the competition even tougher.
"We are ready to compete in the open market because the rules
have been clear cut and, hopefully, they will also be enforced
properly and in a transparent way," Latief said.
Based on the June, 1993, deregulation measures, the level of
tariffs on imported parts and components is determined by the level
of the local content of assembled vehicle -- the higher the local
content, the lower the tariffs.
However, Latief acknowledged some difficulties in the development
of local car components due to low economies of scale and because
most of the producers are small and medium-size enterprises.
"The system of local component supply should be improved further
to lower the cost of car production," Latief noted.(vin)