Automotive Sector Indonesia: Sales of Commercial Buses Rise
Sales of buses (those used for commercial purposes) are growing sharply in Indonesia so far in 2017 and this gives a positive signal to factories. In fact, growth of bus sales, by far, outpaces growth of the whole automotive sector in the first couple of months of 2017. While total sales in Indonesia's automotive sector grew by a modest 5.72 percent year-on-year (y/y) to 282,596 units in the January-March 2017 period, sales of buses grew 30.43 percent (y/y) to 840 in the first four months of 2017.
Based on the latest data from the Indonesian Automotive Industry Association (Gaikindo), a total of 840 bus units were sold (wholesales) in the January-April 2017, period up 30.43 percent from 644 sold units in the same period one year earlier.
Scania experienced the strongest growth in the aforementioned period. Sales of Scania bus units rose 79.71 percent (y/y) to 124 units. Mercedes-Benz came in second with a 36.76 percent (y/y) growth pace, followed by Hino (see table below). Although Hino posted the slowest year-on-year growth, it remains the market leader in Indonesia's commercial bus industry, controlling a 57.35 percent market share.
Adri Budiman, Deputy Director Sales Operations Bus and Vans at Mercedes-Benz Indonesia, said growth of bus sales in the first four months of the year are primarily supported by government spending amid accelerating economic growth and infrastructure development since the last quarter of 2016. Especially, the opening of several new toll roads on Java and Bali - providing new links - boosts sales of buses that are used for public transportation or tourism.
Meanwhile, Santiko Wardoyo, Sales and Marketing Director at Hino Motor Sales Indonesia, agreed saying growth of bus sales come on the back of infrastructure development and growth of the tourism sector.
Sales of Commercial Buses in Indonesia (Wholesale):
| Brand | 2016 Jan-April |
2017 Jan-April |
Y/Y Growth |
| Hino | 390 | 463 | 18.72% |
| Mercedez-Benz | 185 | 253 | 36.76% |
| Scania | 69 | 124 | 79.71% |
| Total | 644 | 840 | 30.43% |
Source: Gaikindo
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