INDONESIA

indonesia car market insights indonesia car market insights

Indonesia Car Market Insights report is a deep research on the most important market in the South Asian region. Starting from the 2004 base, market statistics had been reported with details for cars and LCVs, by segment, brand and models.

Economic Outlook

GDP increased a disappointing 4.7% annually in the first quarter of this year (Q4 2014: +5.0% year-on-year). The Q1 reading marked the weakest result since 2009 and cemented the general downward trend that has taken shape across recent years.

The deceleration was driven by continued weakness in exports as well as lower-than-expected growth in government spending. Slow implementation of new infrastructure projects due to political and bureaucratic obstacles is stirring up doubt that the administration will reach its spending targets this year.

Moreover, given that other sectors of the economy are stuck in low gear, there is a risk of a prolonged slowdown if the government’s bold spending agenda does not fully materialize.

In April, exports registered a seventh consecutive loss and the manufacturing PMI remained entrenched in contraction territory.

Market Outlook

Indonesian car market is mature after a rapid development. In the last decade it grew up really fast almost doubling its relevance in the global automotive industry chessboard with a weight jumped from 0.73% to 1.31% (2014) and this albeit the 2008 financial crisis severely hit this market, before a fast recovery in the following years.

In 2012 the annual volume exceeded the one million units level first time and in 2014 over 1.1 million people had purchased a new vehicle, with market consolidating the position in the world global ranking. In the 2013 Indonesia ranked in 14th place to grow in 13th place in the 2014 after a head to head with Australia.

Despite this year sales are flat from the previous, the collapse of Thai market is awarding Indonesia ad leader country in the ASEAN region with further future benefit derived by new OEMs investments to produce locally.

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