Car sales in Indonesia are likely to recover a little in 2020 after plunging this year during an economic slowdown, an industry association executive has said.
Reuters said 849,609 cars were sold in Indonesia from January to October, down 12% from the same period a year earlier.
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Automotive industry association Gaikindo has cut its sales estimate for this year to around 1m from 1.1m, co-chairman Jongkie Sugiarto told the news agency.
The association expects sales to rise by 5% next year, with economic conditions stable and interest rates lower, he said, adding that he hoped gross domestic product would grow around 5%.
The central bank has trimmed interest rates four times – by 100 basis points in total – this year to counter the global economic slowdown, measures that eventually would make car loans cheaper.
This year, GDP growth is set to slow for the first time in four years to 5.05%, from 5.17% in 2018, according to government estimates. The government targets 5.3% growth in 2020, though its goals have rarely been achieved.
Hyundai Motor Company has just announced a memorandum of understanding (MOU) with the Indonesian government to build its first manufacturing plant in the country.
The company's decision to invest in Indonesia will, in particular, support its growth into new ASEAN markets, securing future growth engines to help the business combat slowing demand in the global automotive market.
