Vehicle sales are estimated to reach about 500,000 units in 2007, the chairman of Indonesia’s automotive industry association was quoted as saying on Friday. The total would be a significant recovery on the 330,000 to 350,000 vehicles to be sold this year.
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Sales have dipped significantly this year after a record 2005. Last year 533,910 vehicles were sold, boosted by low interest rates. However a decision by the Indonesian government to hike fuel prices and interest rates hit the industry hard.
“For next year, it would remain hard to reach last year’s level, but it is possible to get closer to 500,000 units,” Bambang Trisulo told Reuters. “That can happen as long as international oil prices do not reach $US100 a barrel … and the country’s interest rates are at 10%.”
Indonesian car distribuors are hoping the country’s first international motor show this month will help the ailing sector swing back into the fast lane after months of falling sales.
Top global makers such as Toyota and Honda plan to unveil new models during the 10-day event that began on Thursday (20 July) in Indonesia, Southeast Asia’s biggest economy.
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By GlobalDataAutomobile firms in the country of 220 million people are banking on the new models and the start of a declining interest rate cycle to rack up around 1.2 trillion rupiah ($130.9m) in sales from some of the show’s expected 200,000 visitors.
