New vehicle sales in Indonesia fell by 5.3% to 87,650 units in September compared with 92,540 units in the same month of last year, according to local industry sources citing data from industry association Gaikindo.
This follows flat sales in August, as concerns mounted over increasingly sluggish consumer spending in the country. Bank of Indonesia (BI) cut its benchmark interest by 25 basis points twice in the last two months to 4.25% to help stimulate domestic consumption.
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The rate here is still high compared with in neighbouring economies such as Thailand, Malaysia and the Philippines, with room left for further cuts in the future if required.
Sales in the first nine months of the year were still 2.7% higher at 803,760 units, compared with 782,840 units in the same period of last year.
New models launched at the annual Gaikindo motor show in August, including the new Mitsubishi Xpander compact MPV, are expected to provide additional support for the market in the fourth quarter of the year.
