The latest data from the Indonesian Automotive Industry Association showed that retail car sales totaled 888,335 units in 2011, up by 19.26% YoY from 744,895 units in 2010. Meanwhile, wholesale car sales topped 893,420 units in 2011, rising by 16.98% YoY from 763,751 units in the previous year.
Toyota Astra Motor, the country's largest automobile maker, still dominated the domestic car market, with total sales of 313,967 units or 35.34% of the total sales recorded in 2011, followed by Daihatsu and Mitsubishi, which recorded sales of 137,166 units (15.44%) and 129,345 units (14.56%), respectively.
Mr Sudirman Maman Rusdi chairman of Gaikindo said that the sharp increase in car sales was driven by higher demand from local consumers thanks to the country's convincing economic performance throughout the year.
According to data from the Central Statistics Agency dated November 2011, the country's economy grew by 6.5% until the third quarter of 2011, which was among the highest rates of expansion in the Asia region.
Mr Rusdi said that "Our economy continues to expand with our GDP per capita surpassing USD 3,600, meaning higher purchasing power."
Mr Gaikindo estimated that the car sales would grow only by 4.69% to 930,000 units this year as the global economic downturn would start to affect the Indonesian economy. He added that "We set such a conservative target because the impact of worldwide economic crisis is still a question for us."
Mr Sudirman, who is also chairman of car maker Astra Daihatsu Motor, said that along with the nationwide car sales moderate growth, his firm also expected its sales to rise by up to 5% to 145,000 units in 2012, while its market share would rise from 15.5% in 2011 to 16% in 2012. He added that "To achieve this, we'll sell our existing products and strengthen our sales network."
Recently, TAM's marketing director Mr Joko Trisanyoto also said that his firm had set a conservative target for next year's sales due to uncertainties stemming from the current economic slowdown.
The tsunami that hit Japan in March last year followed by the worst flood in a decade in Thailand recently had an adverse impact on Japanese automakers, including Honda and Toyota, which temporarily halted their operations, causing disruption of spare parts and components shipments to Indonesia.
In November 2011, Daihatsu launched the second generation of its best selling car, the Xenia. The launch ran concurrently with the introduction of the second generation of Avanza, Toyota’s biggest selling car.
The country's huge population of 240 million and its growing middle class, along with stellar economic performance and improved investment climate in the country led a number of automakers to increase their investment in Indonesia, which is Southeast Asia's largest economy.
Japan's fourth largest automobile and motorcycle manufacturer, Suzuki, has bought 1.3 million square meters of land in an industrial park in East Jakarta for JPY 10 billion on which to build a plant. The new plant, estimated to cost JPY 30 billion, will produce 100,000 engines per year to reduce imports. Suzuki has said that it will invest up to JPY 60 billion in the new plant.
The company will spend another JPY 20 billion to further increase its local components and expand its annual production capacity by 20,000 cars to 100,000 in 2012.
Retail car sales 2011 vs 2010
Brands 2011 2010 Change
Daihatsu 137,166 115,703 19%
Honda 43,402 53,349 -18%
Isuzu 23,603 23,051 24%
Mazda 3,996 6,033 49%
Mitsubishi 129,345 102,005 27%
Nissan 57,314 34,973 65%
Suzuki 90,579 63,332 32%
Toyota 313,967 230,711 12%
Others 73,453 55,223 33%
Total market 888,335 745,390 19%
Source: Gaikindo
(Sourced from www.thejakartapost.com)
