Jakarta Globe, Alvin Darlanika Soedarjo, July 29, 2010
Jakarta.Indonesia has hit the fast lane in terms of auto sales and has overtakenSoutheast Asian pace-setter Thailand for the first time, according to a Nikkeisurvey from the first six months of the year.
Officialsand auto executives attending the 18th Indonesia International Motor Show inJakarta told AFP the outlook for sales in the archipelago of 240 million peoplehad never been brighter.
“Sincelate 2009 and early 2010, all auto brands and producers have been trying toincrease production capacity in Indonesia” to meet demand, industry ministryofficial Budi Darmadi said.
“Comparedto other countries in the region, we have the fastest growth of car sales.”
Salespeaked in Indonesia at 600,000 units in 2008 but slumped 20 percent last yeardue to the global financial turmoil. This year’s figures are expected to top700,000 for the first time, ahead of Thailand.
TheIndonesian Automotive Industry Association (Gaikindo) said auto sales inIndonesia jumped 76 percent to 370,206 vehicles in the first half of 2010,driven by strong demand for minivans with engine outputs of 1.5 liters.
Sales inThailand rose 54 percent to 356,692 units during the same period, according tothe Nikkei survey released Wednesday.
Some1.18 million new vehicles were sold in Indonesia, Thailand, Malaysia, thePhilippines, Vietnam and Singapore during the period, it said.
This wasan increase of 41 percent and put the industry on track to surpass the 2008sales record of 2.09 million units for the six key Southeast Asian markets.
The newswill be music to the ears of Toyota executives — Japanese cars account forabout 80 percent of sales in these countries.
Multipurposemodels like Toyota’s Avanza — a four-door family hatchback — make up 30 percentof total sales in Indonesia, Nikkei said.
“Indonesiamay hit its first million annual car sales in the next two years,” industryanalyst Suhari Sargo said.
Sargosaid more and more Indonesians would trade in their motorcycles for cars aswealth was more evenly distributed outside the economic centre of Java island.
“Butbefore it can achieve more well-balanced wealth distribution, the governmentmust improve infrastructure such as roads,” he said.
GunadiSindhuwinata, the chief of prominent distributor Indomobil, said most vehicleswere purchased through credit so low interest rates were crucial.
“Consideringthe country’s population of 240 million, sales of 700,000 units a year doesn’tmean much,” Sindhuwinata said.
Indonesiaweathered the global liquidity crunch and is forecasting growth of around 5.7percent this year, among the fastest in the G20 group of rich and developingcountries.
Itspotential has caught the eye of Japanese carmaker Nissan, which plans to invest20 million dollars in its Indonesian assembly plant to double productioncapacity to 100,000 cars from 50,000.
“Todaywe have about five percent market share. This is far below our potential,”chief executive Carlos Ghosn said while visiting Jakarta in June.
Mercedes-Benzbooked remarkable growth although competition in the luxury segment was tough,Mercedes-Benz Indonesia chief executive Rudi Borgenheimer said.
“Oursales have increased about 46 percent to June this year compared to the sameperiod last year. I’m very proud,” he said. “Per capita income has risen. Morepeople can afford cars now compared to when I came to this country four yearsago.”
Risingcar sales may be good news for some, but residents of the traffic-chokedIndonesian capital could be forgiven for hoping the additional vehicles end upon other cities’ roads.
AgenceFrance-Presse
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