New vehicle sales in Indonesia fell by 2.5% to 97,154 units in May, from 99,687 units a year earlier, according to data released by Indonesia’s automotive industry association Gaikindo.
May saw the first monthly year on year sales decline in 18 months with volumes falling below the 100,000-unit mark for the first time this year. GDP growth slowed in the first quarter, as uncertainty surrounding next month’s general elections and future economic policy affected sentiment.
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The vehicle market currently looks a little saturated at these levels, after several years of strong growth and the introduction of higher interest rates and tougher lending conditions last year.
The market last month was underpinned by sales of Low-Cost Green Cars (LCGCs), which amounted to 12,261 units compared with none a year earlier. These cars accounted for 12.6% of total vehicle sales and 17.0% of the 72,101 light passenger vehicles sold last month.
Demand for other types of light passenger vehicles continued to weaken with sales falling by almost 18% to 59,840 units compared with 72,858 in the same month last year.
Commercial vehicle sales fell by 6.6% to 25,063 units, from 26,839 units previously.
Cumulative five-month sales increased by 6.8% to 531,812 units, from 497,946 units in the same period of last year, including 69,899 LCGCs, 317,335 other types of light passenger vehicles and 144,578 trucks and buses.
