Indonesia's June Car Sales Rise 11.4% to 91,471 Vehicles
Car sales in Indonesia grew 11.4 percent (y/y) to 91,471 units in June 2016. Henry Tanoto, Vice President Director of Toyota Astra Motor (TAM), said the increase in car sales is supported by people's eagerness to purchase a car ahead of the Idul Fitri holiday (4 - 8 July 2016). A portion of the population buys a (new) car before going on "mudik" (a term that refers to the traditional journey made by city dwellers back to their places of origin to spend a couple of days with their families during the Idul Fitri holiday, the holiday that marks the end of the Islamic fasting month).
In the first six months of 2016, Indonesian car sales totaled 531,860 units, up a mere 1 percent (y/y) from car sales in the same period one year earlier, indicating that Indonesians' purchasing power and consumer confidence have only grown slightly over the past year. Car sales are a good indicator to measure purchasing power and consumer confidence. In full-year 2016, the Indonesian Automotive Industry Association (Gaikindo) targets to see car sales grow between 5 - 10 percent (y/y) to 1.1 million vehicles.
The 11.4 percent (y/y) increase in car sales in June 2016 is therefore not so much supported by a fundamental improvement in the Indonesian economy but more likely because the car buying spree (supported by the 13th month salary) ahead of the Idul Fitri holiday occurred in June, whereas last year it occurred in July (when the Idul Fitri holiday fell on 16 - 22 July 2015).
Given consumers were eager to buy a car before the Idul Fitri holiday (that started on 4 July 2016) and July is a month with relatively limited working days (due to the public holiday) it implies that Indonesia's July car sales may show a steep fall. Car sales should rebound in August supported by the Gaikindo Indonesia International Auto Show (GIIAS), held between 11 and 21 August 2016, reportedly the largest automotive exhibition in Southeast Asia. At this event several local car manufacturers will launch new car models.
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 | 88,250 |
| March | 87,917 | 95,996 | 113,067 | 99,410 | 93,990 |
| April | 87,144 | 102,257 | 106,124 | 81,600 | 84,600 |
| May | 95,541 | 99,697 | 96,872 | 79,375 | 88,537 |
| June | 101,746 | 104,268 | 110,614 | 82,172 | 91,471 |
| 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
Can Indonesia surpass Thailand as biggest SEA car hub in next five years?
Voting possible: -
Results
- Yes, but more incentives from government are needed to attract investment (60.3%)
- Yes, it will not even require additional efforts, it just needs time (17.6%)
- No, Thailand's automotive industry is too strong (17.6%)
- I don't know (4.4%)
Total amount of votes: 68
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