New vehicle sales in Indonesia fell by 2.3% to 84,880 units in December from 86,870 units a year earlier, according to wholesale data compiled by industry association Gaikindo.
The market struggled to make progress in the second half of last year with manufacturers discounting heavily to reduce high stock levels in recent months. Consumer spending remains lacklustre, with lenders becoming increasingly cautious.
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The new model launch cycle also slowed significantly, also contributing to sluggish consumer interest.
Full year sales grew by just 1.6% to 1,079,300 units in 2017, from 1,062,700 units in 2016, driven mainly by strong demand for commercial vehicles.
Rising commodity prices and buoyant construction sector activity fuelled a strong recovery in medium and heavy truck sales last year and this is expected to continue.
Gaikindo secretary general Kukuh Kumara does not expect overall vehicle sales in 2018 to improve significantly from last year with total industry volumes forecast to rise to just 1.1m units.
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By GlobalDataHe expects regional elections later in the year will help underpin demand, however.
Among the new models that will enter the market this year are replacements for the Toyota Rush and Daihatsu Terios SUVs; the Datsun Cross which was displayed at last year's Gaikindo motor show; a new MPV from SGMW Motor (Wuling), and new versions of the Suzuki Ertiga.
