Indonesian Car Sales Fall in First Quarter Amid Sluggish Spending

Jakarta. Indonesian car sales in the first quarter fell 14 percent last year as slowing economic growth took its toll on consumers’ purchasing power.

Car manufacturers shipped 282,569 units to dealers in the January-March period, down from 338,500 units in the same period last year, data from Indonesian Automobile Manufacturers Association (Gaikindo) on Wednesday.

“It must be accepted. If economic growth is sluggish, car sales will be sluggish, too,” Gaikindo deputy chairman Jongkie D. Sugiarto said on Wednesday.

Indonesia’s economy last year grew 5 percent, the slowest pace in the past five years. Car sales gauge household consumption, which accounts for half of Indonesian economic activity.

GlobeAsia