Indonesia's new vehicle market continued to decline in August 2019, with sales falling by 11.5% to 90,443 units from 102,197 units a year earlier, according to wholesale data compiled by industry association Gaikindo.
Economic growth has remained sluggish this year with first-half GDP growth at around 5.1% reflecting slowing investment and declining exports.
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Bank Indonesia reversed last year's tightening policy, which was designed mainly to defend the rupiah, with three 25 basis point cuts in the last three months to 5.25% help stimulate domestic consumption.
Total vehicle sales were down by over 13% at 660,720 units in the first eight months of the year from 763,336 units a year earlier, with the passenger vehicle tally falling by 13% to 508,101 units and truck and bus sales down by 15% at 152,619 units.
The annual Gaikindo Indonesian International Auto Show (GIIAS) held in July also had little to offer in the way of models that could drive a second half market recovery.
Toyota reported a 6.5% drop in sales to 212,688 units in the eight month period while Daihatsu's sales fell by 11.5% to 115,451 units; Honda shifted 84,890 units (-20.5%); Mitsubishi Motors 83209 (-22.1%); and Suzuki 63,351 (-22.9%).
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By GlobalData
