The Indonesian vehicle market expanded by 37.9% year-on-year in November 2007 to 45,827 units, as the market continues its recovery towards the record highs achieved in 2005, writes Tony Pugliese.
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Data released by PT Toyota Astra Motor also shows a sharp increase in volumes on the previous month, by some 47%, as buyers returned to the market after the Idul Filtri holidays in October.
The domestic economy remains robust, with GDP growth for the whole of 1997 expected at around 6.4%, with the growth outlook at over 6% for 2008. Concern over the high oil prices and related inflation is increasing however, taking the gloss off a bullish outlook for the domestic economy. This could signal the end of the current monetary loosening cycle – the main driver of the strong economic growth over the last 18 months.
Vehicle sales in the first eleven months of 2007 amounted to 395,300 units – 37.4% higher than the year-earlier period, when the market was reeling from the after-effects of the sharp hikes in interest rates – which were also oil-price related. For the full year, the market is on target to reach 435,000-440,000 units – compared with 318,904 in 2006.
The best-selling cars were all from the Toyota stable, with the Daihatsu Xenia compact MPV and the Toyota Avanza derivative accounting for a combined 83,658 units in January-November – or 21% of the domestic vehicle market. For the full year, combined sales are likely to exceed 90,000 units. The Avanza is also sold in a growing number of overseas markets, including Thailand and Malaysia.
The Innova is the second best-selling model range with 36,313 sales in the 11-month period, with full-year volumes expected to exceed 40,000 units. Other key vehicle models include the Honda Jazz, with full-year sales expected to reach 17,000 units, the Mitsubishi Canter range with 25,500 units, and the Suzuki Carry, with 22,500 units.
Tony Pugliese
