Local car sales surge thanks to stronger rupiah

Sudibyo M. Wiradji, Contributor, Jakarta

The Association of Indonesian Automotive Industries (Gaikindo) reported robust sales during the first five months of this year thanks to a more stable rupiah and an improvement in the country's economy.

The association's chairman, Bambang Trisula, said that as of May 2002, total car sales reached approximately 130,500 units, a 15 percent increase compared to the same period in 2001.

He said the sales of passenger and commercial cars showed a significant increase during the period, but those of heavy trucks remained stagnant.

Bambang said that Toyota Kijangs remained the top selling model in the January to April car sales, with approximately 7,000 units, followed by Suzuki with 5,400 units, Mitsubishi with around 4,120 units, KIA with 4,000 units, Isuzu with 2,000 units, Daihatsu with 1,800 units, Hyundai with 750 units and Honda with around 750 units.

He expressed confidence that if the rupiah remained stable below Rp 9,000 per U.S. dollar, the volume of car sales would reach 320,000 units by the end of 2002. "The key to good car sales rests on the stability of the rupiah for at least four months in a row," he said, adding, "the unstable rupiah exchange rate will make it difficult for car business executives to do business".

Car manufacturers that have enjoyed good sales performance in this year's first quarter include PT Toyota Astra Motor (ATM), Nissan, PT Garuda Mataram Motor, Indonesia's sole agent of AUDI, and PT Astra France Motor, the country's sole agent of Peugeot. In the January to May 2002 period, PT ATM saw a 34.2 percent increase in car sales to 37,319 units, compared to 27,818 units in the same period last year, Nissan with a 70 percent increase and PT Astra France Motor with 775 units sold.

"This year, we are seeing better sales of Audis because of the public's increased knowledge of Audi technology," said PR Manager for Audi Wanny Bhakti AP, adding, "we are pleased to control a 10 percent share in the luxurious car market in Indonesia".

PT Astra France Motor's Planning and Communication Dept. Head Mukiat Sutikno disclosed that the Peugeot 206 and 307 was in high demand in many countries, including Indonesia. "We see a stable market and our 2002 sales target is between 2,500 and 3,000 units," Sutikno said.

PT Toyota Astra Motor's (ATM) Communication Department Head, Marketing Planning & CR Division Hendrayadi Lastiyoso said that of the total national sales of 131,778 units for the January to May 2002 period, the company controlled a 28.3 percent market share. "The increase in national automotive sales is in parallel with the country's improved economy," he said, adding, "we expect to maintain last year's market share or at least reach a better target than we achieved in 2001".

In 2001, PT ATM controlled a 26.7 percent market share, with 80,144 units sold, he said.

Nissan's Sales and Marketing Senior Manager B. Ronny Tjahjadi said: "The floods in early 2002 boosted the sale of SUV Type Nissans. Currently, Nissan is marketing the Nissan Terrano, Nissan Patrol 4X4 and Nissan Frontier 4X4," he said.

However, he said the sale of its Sedan model, Infiniti, between January and May 2002 saw a 20 percent drop, compared to the same period last year due to the stagnant market of high class sedans.

"The sales of Nissan Terrano Spirit remain the backbone of Nissan sales in Indonesia," Ronny said.

Car business executives expressed confidence that with this year's first quarter car sales, an increase of around 10 percent compared to the same period last year, the country's car market remains promising.