New vehicle sales in Indonesia continued to plunge in August 2020, by almost 59% to 37,291 units from 90,568 units in the same month of last year, according to member wholesale data compiled by industry association Gaikindo.

The global COVID-19 pandemic has taken a heavy toll on the economy so far, both in terms of domestic consumption, investment and exports. GDP shrank by 5.3% in the second quarter following growth of just under 3% in the first quarter, after the government imposed widespread business and social restrictions in March which it began to gradually lift in May.

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But with infections nationwide still on the rise, any hopes for a quick economic rebound have been dashed. The capital city Jakarta went back into semi-lockdown in mid-September, further denting consumer and business sentiment, while international travel restrictions continue to affect the country’s hospitality and tourism sectors.

The central bank cut its benchmark interest rate by a further 25 basis points in July to help stimulate domestic consumption, bringing the rate down to 4% from 6% last year.

Vehicle sales in the first eight months of 2020 were down by over 51% at 323,507 units compared with 661,919 in the same period of last year, with deliveries in the second quarter plunging by almost 90% to 24,042 units.

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Sales of passenger vehicles fell by over 52% to 243,154 units year to date, while sales of trucks and buses were down by over 47% at 80,353 units.

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Toyota reported a 54% decline in wholesale volumes to 97,728 units year to date, followed by Daihatsu with an almost 50% drop to 57,978 units, Honda 43,832 units (-48%), Suzuki 38,656 units (-39%) and Mitsubishi Motors 34,704 units (-58%).

Gaikindo said it was in the process of revising down its full year sales forecast further from its current forecast of 600,000 units (-40%), to take into account the worsening COVID-19 pandemic in the country.