November car sales rise 62 percent

November car sales rise 62 percent

Naila Firdausi, Bloomberg, Jakarta

Indonesia's automobile sales in the local market rose 62 percent in November from a year earlier, PT Astra International said, citing figures from the Association of Indonesian Automotive Industries.

A total of 35,162 vehicles were sold last month, compared with 21,683 in the same month last year. Astra sold 16,093 automobiles in the local market last month, 81 percent more than the 8,879 units it sold in the same month last year.

Faster economic growth and record-low interest rates are helping Astra and rival PT Indomobil Sukses Internasional sell more cars in the country of 235 million people. Most car purchases in Indonesia are funded by loans.

Indonesia's economy may expand 5 percent this year, higher than an earlier forecast of 4.8 percent, the International Monetary Fund said. That would be the fastest pace in eight years.

In the first 11 months, sales of trucks, jeeps and sedans in Indonesia grew 33 percent to 434,743 units from 326,225 units. Astra's domestic sales in the 11 months rose to 193,999 from 136,098 units a year earlier.

In October, domestic sales by Indonesian automakers included in the association expanded 41 percent.