Sales of Trucks in Indonesia Continued to Decline in January
Sales of trucks in Indonesia fell 30.2 percent year-on-year (y/y) to 5,555 units in January 2016 from 7,918 units in the same month one year earlier. This weaker sales figure indicates that the market for trucks in Indonesia remains subdued. According to the latest data from the Indonesian Automotive Industry Association (Gaikindo), sales of all types of trucks fell with the exception of heavy trucks. Heavy trucks, used for mining, agriculture and infrastructure development, rose slightly to 518 units in January 2016.
The (limited) increase in sales of heavy trucks in Indonesia is regarded the result of accelerating government-led infrastructure development across the nation, and should not be taken as an indication that the mining and agriculture sectors have improved. Enhanced realization of government spending, partly on infrastructure development, in the last quarter of 2015 was also the key to unlock a 5.04 percent (y/y) GDP growth pace in Q4-2015, hence boosting expectations that Indonesia's economic growth will finally accelerate again in 2016 (after six years of economic slowdown). Such optimism can be reason for developers to purchase heavy equipment in the first month of 2016. Overall, however, sales of trucks (all segments) in Indonesia have declined to the lowest January sales figure in three years.
Sales of light trucks - which include the Mitsubishi Colt and Toyota Dyna - fell 32.0 percent (y/y) to 4,588 units in January, while sales of medium trucks - such as the Isuzu Gyga, Hino (Lohan) and Fuso - declined 32.3 percent (y/y) over the same period.
Duljatmono, Executive Marketing Director MFTBC Marketing Division at Krama Yudha Tiga Berlian Motors, said sales of trucks in Indonesia are not expected to improve in the first quarter of 2016. He hopes that government-led infrastructure development and an accelerating economy will give rise to higher sales of trucks starting from the second quarter of the year. Moreover, in the second quarter businesses start to prepare for the holy fasting month of Ramadan and Lebaran (Idul Fitri) celebrations (both occasions give rise to increasing consumption of food products and consumption of various other consumer items such as clothes, bags and shoes). This should give rise to higher demand for trucks for the transportation of these goods.
In full-year 2015, sales of trucks (light, medium and heavy) in Indonesia fell 16.4 percent (y/y) to a total of 76,164 units.
Sales of Trucks in Indonesia in January:
| January 2014 |
January 2015 |
January 2016 |
|
| Light Trucks | 8,586 | 6,751 | 4,588 |
| Medium Trucks | 1,040 | 664 | 449 |
| Heavy Trucks | 810 | 503 | 518 |
Source: Gaikindo