Posted on 18 Apr 2015
Despite low sales in the first quarter, automobile and motorcycle manufacturers are confident about sales prospects ahead, maintaining their full-year sales targets.
Car sales dropped 14.05 percent to 282,345 units in the January-March period from the past year, while motorcycle sales declined 19.10 percent to 1.61 million units.
Producers attributed such poor quarterly results to lower purchasing power on the back of the economic slow down and rising fuel prices as well as soft prices of commodities in the global market, such as palm oil, coal and rubber.
Association of Indonesian Automotive Manufacturers (Gaikindo) chairman Sudirman Maman Rusdi said that the industry group still expected overall sales to reach 1.2 million units in 2015, similar to the level seen in 2014.
"Normally, car sales in the first quarter are lower than in the second and following quarters. We still believe that demand will likely pick up in the second quarter," he said, adding that however, the worst scenario would be to deliver around 1 million units.
Lower demand was seen in major four-wheeler producers such as Toyota Astra Motor and Astra Daihatsu Motor with some exceptions in automakers such as Honda Prospect Motor.
Toyota Astra Motor, for instance, posted a 24.49 percent decline in sales to 85,828 units in the first three months compared to last year, while Astra Daihatsu Motor recorded a 11.92 percent drop to 45,317 units, according to data from Gaikindo. In contrast. Honda Prospect
Motor which, against the downward trend, recorded strong growth of 23.31 percent by selling 44,488 units.
Indonesian Motorcycle Industry Association (AISI) chairman Gunadi Sindhuwinata shared Sudirman's optimism, saying that the business group would not revise its 2015 sales target as it was still upbeat on improved outlook in the upcoming quarters, especially the second quarter ahead of Idul Fitri.
The group expects a sales surge of up to 5 percent from the 7.87 million units booked last year.
The holiday usually boosts sales of vehicles in the world's most-populous Muslim-majority nation, particularly motorcycles, which are massively used by holiday travelers.
"We believe there will be additional demand ahead of Idul Fitri according to the pattern seen each year," Gunadi said. He said the group was optimistic about economic prospects for the rest of the year.
Economists have estimated that the economy will likely expand in the upcoming months as the government disburses its budget to finance a wide array of projects, primarily infrastructure development, spurring domestic consumption, the main engine of growth in Southeast Asia's largest economy.
The country's economy shrank to 5.02 percent in 2014, its slowest pace in five years, affecting automotive sales. The government aims to expand it to 5.7 percent this year.
Major motorcycle manufacturers recorded poor sales in the first quarter, which they attributed to shrinking purchasing power following the fuel-price hikes as well as slumping prices of commodities.
Two-wheeler makers Astra Honda Motor and Yamaha Indonesia Motor Manufacturing saw their sales plunge by 25.35 percent to 872,262 units and by 28.99 percent to 436,692 units respectively, according to AISI's statistics.
