Automotive Industry: Indonesia's May Car Sales Up, No Fundamental Improvement
Domestic car sales in Indonesia (wholesales; from factories to dealers) surged 11 percent (y/y) to 87,919 vehicles in May 2016, the second straight month of rising car sales (on a year-on-year basis). However, Jongkie Sugiarto, Chairman of the Indonesian Automotive Industry Association (Gaikindo), reminded stakeholders not to become too enthusiastic as the rise in Indonesia's May car sales was caused by technical factors, rather than fundamental ones. Last month, the nation's car manufacturers began to deliver new models to dealers ahead of the Idul Fitri holiday.
For example, Honda Prospect Motor started to send its new Honda Brio RS, Honda Brio Satya and Honda Civic Turbo units to dealers in the month May ahead of the Idul Fitri celebrations that are planned in the week 4 - 8 July when employees usually take some days off to spend a holiday with their families. One month earlier Honda Prospect Motor had ended the delivery of older models. Therefore, the latest deliveries that caused the rise in car sales in May cannot be regarded a sign that Indonesia's automotive industry has entered a rebound as purchasing power in Indonesia remains sluggish. Gaikindo Chairman Sugiarto expects domestic demand for cars to remain sluggish in the next couple of months, especially as car sales usually tend to decline in the weeks around Idul Fitri.
Toyota remains the clear market leader in Indonesia with 31,215 sold vehicles in May 2016, followed by Honda (17,427 units), Daihatsu (15,928 vehicles), Mitsubishi (7,943 cars) and Suzuki (6,172 units). Gaikindo maintained its full-year 2016 car sales target at 1 million vehicles.
Indonesian Car Sales (CBU):
| Month | Sold Cars 2012 |
Sold Cars 2013 |
Sold Cars 2014 |
Sold Cars 2015 |
Sold Cars 2016 |
| January | 76,427 | 96,718 | 103,609 | 94,194 | 85,012 |
| February | 86,486 | 103,278 | 111,824 | 88,740 | 88,224 |
| March | 87,917 | 95,996 | 113,067 | 99,410 | 93,990 |
| April | 87,144 | 102,257 | 106,124 | 81,600 | 84,685 |
| May | 95,541 | 99,697 | 96,872 | 79,375 | 87,919 |
| June | 101,746 | 104,268 | 110,614 | 82,172 | |
| July | 102,511 | 112,178 | 91,334 | 55,615 | |
| August | 76,445 | 77,964 | 96,652 | 90,537 | |
| September | 102,100 | 115,974 | 102,572 | 93,038 | |
| October | 106,754 | 112,039 | 105,222 | 88,408 | |
| November | 103,703 | 111,841 | 91,327 | 86,938 | |
| December | 89,456 | 97,706 | 78,802 | 73,264 | |
| Total | 1,116,230 |
1,229,916 |
1,208,019 | 1,013,291 |
| 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |
| Car Sales (car units) |
607,805 | 486,061 | 764,710 | 894,164 | 1,116,230 |
1,229,916 | 1,208,019 | 1,013,291 |
| Car Exports (car units) |
100,982 | 56,669 | 85,769 | 107,932 | 173,368 | 170,907 | 202,273 | 207,691 |
Source: Gaikindo
Meanwhile, data from the Indonesian Motorcycle Industry Association (AISI) show that motorcycle sales fell 1.7 percent (y/y) to 461,506 units in May 2016.