PT Astra International, Indonesia’s largest car distributor, expects production at its affiliated vehicle assembly plants to drop by 15% in the second quarter of 2011 as a result of parts shortages resulting from Japan’s earthquake in March.
The company has significant stakes in some of the country’s largest vehicle manufacturers, including PT Toyota Motor Manufacturing Indonesia, PT Astra Daihatsu Motor and PT Isuzu Motor Indonesia, which, combined, account for 60% of total vehicle output in the country.
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Speaking at a general shareholders meeting, president director Prijono Sugiarto said he expects production to “bounce back” in the second half of the year. He added that any loss of output over the year will be offset by higher motorcycle production, which has not been affected by the events in Japan
Local content levels at PT Astra Honda Motor are around 95%. The company, 50% owned by Astra International, is Indonesia’s largest manufacturer of motorcycles. Production capacity will be increased to 4m units this year due to rising demand.
Separately, the Malaysian Automotive Institute – part of the Ministry of Trade and Industry – said it expects total vehicle sales in Malaysia to fall by just 3% following a series of conversations with vehicle manufacturers.
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