Astra Honda Raises Sales Target as Market Booms

Motorcycle sales in Indonesia rose 1.5 percent in October from a year earlier, data from an industry association showed on Friday (10/11). (Reuters Photo/Beawiharta)

By : Carla Isati Octama | on 9:45 PM January 07, 2015
Category : Business, Corporate News

Jakarta. Astra Honda Motor, the sole manufacturer and distributor of Honda motorcycles in Indonesia, has increased its sales target to 5.3 million motorcycle units this year on the back of the company’s new products.

This would be a 5 percent increase form its sales last year, estimated at 5.05 million motorcycles, said Margono Tanuwijaya, marketing director of Astra Honda Motor.

The company in November set a 2015 sales target of 5.2 million motorcycles.

Astra Honda plans to launch several new products this year amid declining fuel prices, which would lift consumers’ purchasing power, Margono said.

He declined to disclose more details on the plan.

Astra Honda Motors failed to achieve its 5.3 million target last year, as uncertainty surrounding the country’s elections led to  consumers delaying their spending, Margono said.

“Moreover, there were natural disasters and the collapse of the Comal bridge [in July last year] that affected our distribution,” Margono said, referring to a bridge in Central Java’s main road network.

Thomas Wijaya, Astra Honda Motor’s general manager for sales, said the company planned to improve service for consumers in a bid to maintain market share.

Astra Honda Motor is a joint venture between Astra International, the country’s biggest automotive distributor, and Japanese auto giant Honda Motor.

Motorcycle sales in Indonesia grew 1.8 percent to 7.35 million units in November last year, compared to 7.2 million unit in the same period last year, according to data from Indonesia’s Motorcycle Industry Association.

Indonesia held the top spot in motorcycle sales in the Southeast Asia region between January and September last year, accounting for 73.1 percent of all new motorcycles sold in the region, according to figures from the Asean Automotive Federation.

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