Indonesia's Increasing Significance for Toyota's Global Car Sales

Toyota Sales Worldwide:

Country	Sold Car Units
Japan	1,584,316
USA	2,236,042
China	917,488
Thailand	445,464
Indonesia	435,430
World	8,659,742

Car sales in Indonesia have increased sharply in recent years as the country's per capita GDP has shown strong growth, thus giving rise to a rapidly expanding middle class. With per capita car ownership still at a relatively low level, more and more Indonesians can afford to purchase a car. Toyota, the most popular car brand in Indonesia, benefits most of this situation and the Toyota Motor Corp (TMC) is well aware of further potential of car sales in Southeast Asia's largest economy. In fact, Toyota sales in Indonesia are expected to exceed sales in Thailand soon. Therefore, within the period 2012-2017, TMC is planning to invest IDR 13 trillion (USD $1.1 billion) in Indonesia to further expand its dominating position amid intensified competition.

Despite the economy of Indonesia having slowed to a growth pace of 5.78 percent in 2013, higher inflation (reducing people's purchasing power) after fuel subsidies were cut in June 2013, and a higher interest rate policy of Bank Indonesia, Indonesian car sales still continued to rise in 2013 and in the first month of 2014. Sales were supported by the popularity of the new low cost green car (LCGC) which was introduced on the Indonesian market in 2013. Through tax incentives, the Indonesian government attracted car manufacturers (provided that they meet requirements of fuel efficiency targets) to produce the LCGC in Indonesia as it aims to turn in Indonesia into the regional hub for LCGC production ahead of the start of the ASEAN Economic Community in 2015 (which will turn the ASEAN region into one single market and production base). With a price tag of only around IDR 100 million (USD $8,547), these LCGCs are significantly cheaper than other cars. The five principal brands that participate in this program are Toyota, Daihatsu, Honda, Nissan and Suzuki.

One severe negative side effect of sharply growing Indonesian car sales is that it burdens the - already weak - infrastructure in the larger cities, thus causing traffic jams.

Toyota Sales (CBU) in Indonesia:

Month	Sold Cars 2012	Sold Cars 2013	Sold Cars 2014
January	29,189	35,924	35,888
February	33,594	35,350	38,632
March	33,359	32,799
April	34,308	39,730
May	34,808	36,358
June	37,260	35,190
July	36,450	39,284
August	25,904	24,947
September	33,771	40,319
October	35,908	39,318
November	37,030	40,806
December	34,445	34,829
Total	406,026	434,854

Domestic Car Sales (CBU) in Indonesia:

Month	Sold Cars 2012	Sold Cars 2013	Sold Cars 2014
January	76,427	96,718	107,496
February	86,486	103,279
March	87,917	95,996
April	87,144	102,257
May	95,541	99,697
June	101,746	104,268
July	102,511	112,178
August	76,445	77,964
September	102,100	115,973
October	106,754	112,039
November	103,703	111,841
December	89,456	97,694
Total	1,116,230	1,229,904

	2008	2009	2010	2011	2012	2013	2014¹
Indonesia's Car Sales (number of car units)	607,805	486,061	764,710	894,164	1,116,230	1,229,904	1,300,000
Indonesia's Exports (number of car units)	100,982	56,669	85,769	107,932	173,368	170,907	200,000

^{¹ future forecast
Source: Gaikindo}

Further Reading:

• Car Sales, Production and Exports of Indonesia Estimated to Grow in 2014
• Car Sales in Indonesia Unaffected by Weather Conditions in January 2014
• Expansion of Indonesia's Automotive Industry: Raising Exports to Asia
• Car Sales in Indonesia Expected to Rise in 2014 amid Political Elections
• Popular Low Cost Green Car Boosts Indonesian Car Sales in 2013
• Gaikindo Targets 10% Car Sales Growth in Indonesia for 2014

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