Local car sales surge thanks to stronger rupiah

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.