New vehicle sales in Indonesia increased by 3.5% to 110,507 units in October, from 106,754 units a year earlier, according to data released by automotive industry association Gaikindo.

The recent launch of low-cost green cars (LCGCs) in the US$9,000-$11,000 price range are said to have helped the market in October. Toyota and Daihatsu launched the 1.2L Agya and Ayla models respectively in September, while Honda began selling the Brio Satya in October.

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These models helped to offset the recent rise in borrowing costs and broad-based price hikes resulting from the sharp drop in the value of the rupiah over the summer. The market is also coming up against tough year-earlier comparisons.

Cumulative sales for the January-October period increased by 10.4% to 1,018,786 units, compared with 923,071 units a year earlier

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