Optimism About Rising Sales of Commercial Vehicles in Indonesia
After a good year in 2017, sales of commercial vehicles in Indonesia are expected to accelerate further in 2018 on the back of accelerating economic growth, growing activity in the mining and agriculture sectors, and the Gaikindo Indonesia International Commercial Vehicle Expo (to be held between 1-4 March 2018 in the Jakarta Convention Center).
Jongkie Sugiarto, Chairman of the Indonesian Automotive Industry Association (Gaikindo), is optimistic about rising sales of commercial vehicles in Indonesia in 2018. Growth is estimated to come on the back of the new expo that should entice customers but also the central government's push for infrastructure development (which involves the construction of roads, ports, bridges, airports, and more). Meanwhile, rising commodity prices give rise to growing activity in the mining and agriculture sectors of Indonesia and therefore demand for commercial vehicles should rise further this year.
In 2017 the impact of rising commodity prices and the government's infrastructure development push was already felt. For example, sales of trucks and buses in Indonesia rose 45.7 percent year-on-year (y/y).
Also the Gaikindo Indonesia International Commercial Vehicle Expo (abbreviated as Giicomvec) is expected to boost sales of commercial vehicles in Indonesia this year because six commercial vehicle brands will launch new models: Isuzu, Iveco, Mercedez-Benz, Suzuki, and Volvo. Meanwhile, Mitsubishi Fuso will conduct the pre-launch of its latest commercial vehicle.
It is estimated that up to 3,000 potential customers will visit the Giicomvec next month. These visitors come from various sectors, such as the transportation industry, logistics, construction, infrastructure, and oil & gas.
Commercial Vehicle Sales in Indonesia:
| Type | 2016 | 2017 | Growth Y/Y |
| Pick-ups, Mini-buses & Micro-buses |
147,940 | 160,733 | +8.6% |
| Light Trucks | 52,880 | 64,438 | +21.9% |
| Heavy Equipment | 9,408 | 16,252 | +72.7% |
| Trucks & Buses | 8,445 | 12,305 | +45.7% |
| 4x4 | 4,846 | 3,561 | -26.5% |
| Commercial Vehicles | 223,519 | 257,289 | +15.1% |
| Total Car Sales | 1,048,788 | 1,070,248 | +2.0% |
Source: Gaikindo
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