Although Indonesian car sales in 2015 will fall below the target set by the Indonesian Automotive Industry Association (Gaikindo), the institution is optimistic that sales can surpass the level of one million units.

Besides weaker purchasing power, Gaikindo stated that two other factors impact on slowing car sales in Southeast Asia's largest economy. Firstly, the fragile rupiah rate ahead of monetary tightening in the USA. So far this year the rupiah has weakened 13.2 percent against the US dollar hence increasing costs for imports of car spare parts. Secondly - although the central bank eased down payment regulations for the purchase of a car - the interest rate environment remains relatively high with the benchmark interest rate at 7.50 percent, limiting consumers' ability to purchase a loan.

Read: Overview of Indonesia's Automotive Industry

Regarding Indonesian car sales in 2016, Gaikindo expects to see a five percentage point year-on-year growth to about 1.05 million units. This figure is similar to next year's estimated GDP growth figure. According to Gaikindo, the recently unveiled economic policy packages are expected to boost car sales in 2016. The multi-purpose vehicle is expected to remain the most popular type of car. Other segments that will boost car sales are the low cost green car and sport utility vehicle.

Indonesian Car Sales (CBU):

 Month    Sold Cars 2012    Sold Cars 2013    Sold Cars 2014    Sold Cars 2015
 January           76,427           96,718          103,609           94,194
 February           86,486          103,278          111,824           88,740
 March           87,917           95,996          113,067           99,411
 April           87,144          102,257          106,124           81,600
 May           95,541           99,697           96,872           79,375
 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           90,538
 September          102,100          115,974          102,572           93,038
 October          106,754          112,039          105,222           88,325
 November          103,703          111,841           91,327           87,311
 December           89,456           97,706           78,802
 Total         1,116,230
        1,229,916
        1,208,019          940,317

 

     2008    2009    2010    2011     2012     2013     2014     2015¹
Car Sales
(car units)
 607,805  486,061  764,710  894,164 1,116,230
1,229,916 1,208,019 1,000,000
Exports
(car units)
 100,982   56,669   85,769  107,932  173,368  170,907  202,273  200,000

¹ prognosis
Source: Gaikindo

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