Indonesia Auto Sales in the 2017 increased 6% thanks to economic recovery and despite the introduction of legislations against high polluting vehicles. Toyota and Daihatsu dominates with over 55% of share. Suzuki was the fastest growing brand.
Indonesian economy have ended 2017 on a solid note, with growth expected to have edged up for the second consecutive quarter in Q4. Retail sales accelerated in November and consumer confidence picked up in December. However, strong growth in imports in Q4 caused the trade balance to fall, despite double-digit export growth. The economy is expected to have hit a milestone last year, growing to over USD one trillion dollars in nominal terms.
The domestic automotive market had spent four years on the sky, when, during the 2010-2013 the market scored four all time records in a row, almost doubling volume and not only outpacing the magic 1 million units quota, but landing at a 2013 record of 1.22 million vehicles (including HCVs) sales.
Indonesian vehicles market hit the all time record in the 2013, before starting a negative period, declining at few more than 1 million vehicles in the 2015, Then a new positive pathway was taken ending the 2016 at 1.074.000 units (including HCVs and Bus) and keeping a moderate recovery in the 2017 as well.
Indeed, according to data released by GAIKINDO, in the 2017 total vehicles sales have been 1.138.000 (+6.0%).
This is a land dominated by Japanese brands after that General Motors shuttled down all plants in 2015 and Ford closed down all operations at the end of 2016. However, new players are ready to take space in the market and on July 11th it was inaugurated the Chinese low-cost MPV-maker Wuling’s local factory in Cikarang, West Java. Wuling has started selling the Confero S, a rebadged Hongguang S1 – the best-selling vehicle in China – and will launch the 730 MPV to compete with the Kijang Innova and 310 hatch to fight the Toyota Agya/Daihatsu Ayla in 2018. The factory has an annual capacity of 120.000 units but only 8.000 Confero S are scheduled to be produced in 2017.
Remarkable the decision of Jakarta administration to implement since June the law No. 2/2015 on vehicle tax, which aims to limit the growth of private vehicle ownership in the city. Paid annually, a progressive tax increases as the taxable amount increases. According to this law, an owner of a first vehicle is charged 2 percent of the vehicle’s sale value, and each new vehicle is charged an additional 0.5 percent. For example, a second vehicle is charged 2.5 percent and a third vehicle 3%.
At brand wise, hitting the new share record at 34.4%, Toyota sold 393.330 units (+1.3%) with a solid advantage over Daihatsu, second with 202.735 sales (+5.4%) and Honda, third with 196.018 (+3.0%).
In fourth place Suzuki with 118.962 (+21.5%) the fastest growing brand this year, followed by Mitsubishi with 80.106 (-20.1%) and Mitsubishi Fuso with 41.039.
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Tables with sales figures
In the tables below we report sales for Top Brands
