Indonesia's new vehicle market resumed its recent decline in July, with sales falling by over 17% to 89,110 units from 107,431 units a year earlier, according to wholesale data compiled by industry association Gaikindo.
The country's vehicle market has been under pressure this year amid sluggish economic growth, with second-quarter GDP growth at 5.05% year-on-year – slightly weaker than the 5.1% expansion seen in the first quarter and 5.2% in the fourth quarter of 2018. The annual Gaikindo Indonesian International Auto Show (GIIAS) held in July also had little to offer in terms of new models that could drive a second-half market recovery.
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Sales in the first seven months of the year were almost 14% lower at 570,331 units from 661,093 units in the same period of last year, with passenger vehicle sales falling by 13% to 440,070 units from 506,097 units and truck and bus sales down by 16% at 130,261 units from 154,996 units. The Bank of Indonesia reversed last year's tightening policy which was designed to defend the rupiah with two successive 25 basis point cuts in July and August to 5.5% help stimulate domestic consumption.
Toyota reported a 6.5% drop in sales to 183,735 units in the seven-month period, while Daihatsu's sales fell by 11.4% to 100,036 units; Honda 72,981 units (-20.6%); Mitsubishi Motors 72,732 units (-15.7%); and Suzuki 54,729 units (-23.4%).
