Indonesia Domestic Car Sales Up 4.5 % in 2016

numbuhJAKARTA— Car sales in Indonesia market rose throughout 2016. It ended a receding two consecutive years in 2014 and 2015. The Association of Indonesia Automotive Industries (GAIKINDO) noticed that car sales in 2016 reached 1.06 million, up 4.5 percent compared to 2015.

“This figure exceeded the target of 1.05 million units,” Secretary General of GAIKINDO Mr Kukuh Kumara in a press conference in Jakarta, January 2017.

He stated that in the last five years, car sales are likely to grow in eastern Indonesia (Sulawesi, Nusa Tenggara, Papua). “This growth is largely contributed by the sales of affordable price cars that match people’s purchasing power,” he said.

In Papua in 2016, there are 5,088 units of cars sold. That number is only 0.48 percent of total car sales in Indonesia but growth reached 59.73 percent compared to 2015. In West Nusa Tenggara, last year’s car sales grew 94.45 per cent.

Indonesia car sales peaked in 2013 with 1.23 million units. In 2014 sales fell to 1.20 million units, and in 2015 continued to decline to 1.01 units.

Car sales in 2016 were still dominated by passenger cars as much as 854 thousand units, while commercial cars reached 206 thousand units. The passenger car sales were supported by small vehicles types of low cost green car (LCGC) as many as 228,800 units with a growth of 38.3 percent

In the passenger car market, Toyota led the sales (43 percent), followed by Honda (23.3 percent) and Daihatsu (17.3 percent). In the pickup market and small commercial vehicle (SCV), Mitsubishi lead (35.9 percent), followed by Hino (10.5 percent) and Isuzu (7.2 percent). (*)