New vehicle sales in Indonesia increased by 26.5% to 96,656 units in January, from 76,427 in the same month of last year, according to data released by industry association Gaikindo.
The country’s domestic economy continues to benefit from stable interest rates set at historically-low levels and easy access to credit. GDP growth exceeded 6.2% in 2012, despite a slowdown in exports in the second half of the year.
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Efforts to prevent over-borrowing last year, including the introduction of minimum down-payment requirements on vehicle and property loans, have had little impact on the market.
With a number of new low-cost cars set to enter the market this year, sales will likely continue to grow in 2013.
