New vehicle wholesales in Indonesia declined sharply in June, by close to 26%, to 82,200 units from 110,600 units a year earlier, according to industry sources quoting data compiled by local industry association Gaikindo.
Cumulative first half deliveries to dealers were down by over 18% at 525,500 units, compared with 642,100 units in the same period of last year, as consumer spending continued to be held back by high interest rates and inflation and the weak rupiah.
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The country’s economic growth is also being held back by depressed commodity prices and weak investment and exports.
While retail sales have weakened significantly this year, the sharper decline in wholesale volumes in the last two months also reflects significant de-stocking activity ahead of some key new model launches.
The association hopes that a rebound in government spending in the coming months will help inject some additional momentum in the vehicle market in the second half of the year. It has nevertheless reduced its previous full year forecast from 1.2m units to between 1.0-1.1.
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