Car sales in the country increased in August from the same month last year, albeit at a slower pace, to extend its positive growth to five consecutive months, data from the Indonesian Automotive Association (Gaikindo) showed on Wednesday (14/09). (ID Photo/Emral Firdiansyah)
Indonesian Car Sales Expand for Fifth Straight Month in August
BY :DION BISARA
SEPTEMBER 14, 2016
Jakarta. Car sales in the country increased in August from the same month last year, albeit at a slower pace, to extend its positive growth to five consecutive months, data from the Indonesian Automotive Association, or Gaikindo, showed on Wednesday (14/09).
Domestic automobile manufacturers sold 96,294 cars last month, up 6.3 percent from a year earlier as the Gaikindo Indonesia International Auto Show (GIIAS), which took place from Aug. 11 to 21, managed to prop up demand following busy months ahead of the Idul Fitri holiday.
Car sales rose by 11 percent and 13 percent annually in June and July, respectively, as customers, flush with cash after receiving their annual holiday bonuses, tend to spend more on expensive items, such as automobiles.
Manufacturers sold 20,384 units at the auto show alone, raking in Rp 6.2 trillion ($470 million) in sales, Gaikindo said.
Toyota remains the market leader, accounting for 40 percent of total sales in August. Rivals Honda and Daihatsu followed close behind with 18 percent and 17 percent market share, respectively.
Cumulatively, 691,042 cars were sold in the first eight months of this year with Gaikindo being optimistic that 2016 car sales will exceed last year's one million, although only by a tiny amount.
Car sales are often used to indicate the strength of domestic consumption that account for more than half of Indonesia's $850 billion economy. It dropped 15 percent last year as lower commodity prices undermined customers' purchasing power.