Indonesia's new vehicle market declined by 9.5% to 96,030 units in October from 106,079 units in the same month of last year, according to wholesale data compiled by industry association Gaikindo.
Economic growth in the country has remained sluggish this year, with third-quarter GDP growth at just over 5% – slightly lower than the 5.1% growth seen in the first half of the year. Exports have declined this year, while investment has also slowed sharply. Bank Indonesia reversed last year's tightening policy, put in place to provide support for a weakening rupiah, with four 25 basis point cuts in the last four months to 5.0% help stimulate domestic consumption.
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Toyota reported a 14% year-on-year sales decline sales to 31,142 units last month; while Honda's sales were 6% lower at 14,503 units; Mitsubishi's almost 8% lower at 14,023 units; and Suzuki's sales 2.4% lower at 8,721 units.
In the first ten months of the year vehicle total sales declined by just under 12% to 849,609 units from 962,834 units a year earlier. The association still expects full-year sales to reach 1 million units in 2019, down from 1.15 million units in 2018.
