Indonesia car industry outlook at January 2012

Indonesian Government continues to assign at the automotive sector a fundamental rule in the country development. can confirm this on the basis of the “Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development 2011-2025” (MP3EI) presented in May 2011. The plan wish to increase the per capita income at a level over US $ 14,000 by 2025 through balanced and sustainable high growth. The government plans to invest a total of 4,012 trillion IDR, with focus going on accelerating spending on infrastructures.

In recent years the Indonesian car industry grew at an annual average rate of 20 % (last 5 years average) achieving in 2010 the all-time record volume with 660.000 light passenger vehicles, the 2nd inside ASEAN and the 20th at global level.

The 2011 performance was penalized by parts and material supply shortages following the Great East Japan Earthquake in March. As consequence, the 2nd quarter sales were stable, interrupting the long race.However, in the second half market started to grow again, as supply issues were covered, before to be hit again by short supply from Thailand, due to heavy flood in October.

Japaneses carmakers are dominating the market, with all top 10 best-selling models coming from Japan.

Around 30 pct. of the car market is in the hands of the twins MPVs Toyota Avanza (named from Italian “avanzato”, which means “improvement”) and Daihatsu Xenia, manufactured in Indonesia in the Daihatsu plant and from exported in ASEAN region, South Africa and Mexico.

Expectations for 2012 internal demand continues to be positive, despite concerns over financial woes in Europe and the US. Indonesia’s will increase its appeal as one of major consumer nation rises and car sales will continue to growth.

The local Association of Producer forecast a 10 pct. increase for 2012. We at focus2move project a market at 850.000 units, with an increase of 80.000 pieces and +10.3 over last year. The market will continue to grow and in the 2015 it will enter into the exclusive “club “of “1 million sales” countries.

January 2012 started below the expectations. Registrations have been only 63.833, flat over last year.




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