Jakarta (ANTARA News) - The director general of transportation, telecommunications, information equipment industries, Budi Dharmadi, said here on Tuesday he believed car sales in Indonesia would reach 40,000 units a month between June and December as indicated by increasing demand under the downpayment scheme.
He said although sales had reached only 35,000 units a month in the past two months they had been predicted to increase and may even exceed 40,000 units a month.
"It has hit the ceiling now," he said, adding in 2005 the sales reached 45,000 units a month.
He said with the increasing buying power of the people, and the declining key interest rates and the impact of the 2005 fuel price hike, he predicted the sales may reach 40,000 units a month.
"Moreover many producers are now offering new gimmicks and discounts," he said.
He said car sales in the country were still dominated by below 1.500 cc MPVs and SUVs.
He said in the first semester last year, the car sales reached around 160,000 units, and was optimistic they could reach 190,000 to 200,000 units in the same period this year.
He believed sales would reach 200,000 units in the second semester this year bringing total sales to 400,000 units.
He said many automotive companies were interested in building assembly plants in the country in view of the increasing sales.
"Some are considering it while others have already sent a team to study such project," he said referring among others to Fiat which was still considering such project, while Daihatsu had already ask for an expansion permit.
He said many automotive principals were eyeing Indonesia because cars produced in this country were also exported while some large principals already had confidence in the country`s automotive industry`s capability.
"Therefore premium cars like Mercedes, BMW, Audi and Toyota, are assembled here," he said.
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