New vehicle sales in Indonesia increased by more than 56% year-on-year to a new monthly record of 95,541 units in May, compared with 61,055 units a year earlier, according to data released by automotive industry association, Gaikindo.

Strong economic growth, driven by high investments and low interest rates continue to push the market forward. Year-earlier sales were held back by stock shortages in the wake of last year’s tsunami and earthquake in Japan.

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The market in May was also lifted by the prospect of higher down-payment requirements for car loans, which Bank of Indonesia introduced on 15 June.

Cumulative sales for the five-month period were up almost 25% at 433,527 units, from 61,055 units a year earlier.

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