Vehicle sales in Indonesia declined by 4.7% to 52,241 units in October, compared with 54,813 units a year earlier, according to data released by industry association Gaikindo. Sales during the month were lifted by delayed orders during the fasting month of Ramadan in September, according to local sources.

Nevertheless, this is a significant improvement on previous months and reflects improving consumer and business sentiment in the country and low interest rates, which have reduced the cost of loans and financing.

Sales in the first ten months of the year amounted to 389,711 units, 25.3% lower than the 522,041 units sold a year earlier. The market is on target to exceed the association's full-year sales target of 450,000 units.

Gaikindo chairman Bambang Trisulo said he was hopeful that next year's sales could reach 600,000 units, if the recovery in demand continued.

Toyota dominated the market in October with 20,619 sales, followed by Daihatsu with 8,024 units; Mitsubishi with 6,297 units; and Honda with 5,354 units.

Tony Pugliese