RI car sales drop

RI car sales drop

KUALA LUMPUR (Reuters): Growth in vehicle sales in Indonesia is expected to slow down over the next three years, following the country's economic crisis, Herman Latief, vice chairman of the Association of Indonesia Automotive Industries, said yesterday.

Vehicle sales in 1997 are now expected to be around 380,000 compared to an original forecast of 420,000, said Latief. However, this is still be higher than the 331,639 vehicles sold in 1996.

"For sure by 2000 we will clear the half-million (total vehicle sales) barrier. But that was estimated before 2nd July," said Latief.

"We are forecasting at least a two-year correction is needed, so we are estimating (exceeding 500,000 vehicle sales per year) by 2002," he said. Latief was speaking on the fringes of the Global Panel conference in Kuala Lumpur.

Latief said vehicle sales were originally projected to reach 460,000 by 1998 and 500,000 by 1999, reaching 520,000 by 2000.