New vehicle sales in Indonesia continued to rise in July despite the introduction of tighter lending rules in June intended to anticipate and prevent a consumer spending bubble.
Sales rose 15.9% to a new monthly high of 103,219 units, from 89,056 units a year earlier, according to automotive industry association Gaikindo.
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The industry had been expecting a weaker market after Bank Indonesia introduced minimum deposit requirements on passenger vehicle loans of 25-30% in June.
The association’s chairman, Sudirman Maman Rusdi, said that, so far, there have been no visible signs that the tougher lending rules have had a negative effect on sales.
He added that July results were buoyed by purchases brought forward ahead of the Hari Raya holidays in August, which mark the end of the muslim fasting month.
Sales in August are expected to drop sharply from current levels, however.
Volume in the first seven months of the year rose by almost 26% to 638,264 units, from 506,728 units in the same period of 2011. Toyota led the market with 238,584 sales, followed by Daihatsu with 94,314. Combined, the two brands accounted for over 52% of sales.
