Indonesia Automotive Market is Predicted to Grow 4.6 Percent in 2018

By : Ridwan And Aldi Firhand. A | Wednesday, January 17 2018 - 21:42 IWST

Minister of Industry Airlangga Hartarto (second right) was accompanied by Director General of Metal, Machinery, Transportation and Electronic Equipment (ILMATE) I Gusti Putu Suryawirawan (left) at the opening of Gaikindo Indonesia International Auto
Minister of Industry Airlangga Hartarto (second right) was accompanied by Director General of Metal, Machinery, Transportation and Electronic Equipment (ILMATE) I Gusti Putu Suryawirawan (left) at the opening of Gaikindo Indonesia International Auto

INDUSTRY.co.id - Jakarta - Indonesia's automotive market is expected to remain strong in 2018. Vehicle sales are likely to reach 1.125 million units at 4.6% growth rate.

Among these sectors, commercial vehicles are expected to be at high altitudes, along with significant growth of LCGC and MVP segments.

Viviek Vaidya as Senior Vice President of Frost And Sullivan mobility said long-term factors such as GDP growth rates, good demography and cheap parc per thousand points against strong long-term growth rates. However, we need to focus on specific factors to understand dynamics in 2018.

"The upcoming car launch with new models, facelifts and variants especially for some of the key market models in the MPV Segment is expected to drive sales," said Viviek in Jakarta (16/1/2018).

He added that the commercial vehicle market will continue to be driven by demand in the construction and infrastructure segment. There is a lot of pent-up demand in the commercial vehicle segment.

"Due to production shortage, all demand in 2017 can not be met, the demand for commercial vehicles will soar until 2018," he explained.

Furthermore, Viviek explains, consumer sentiment is expected to remain positive in 2018, primarily due to positive economic outlook, stable exchange rate and lower base lending rate. In fact, the decline in the base rate of credit of 0.5% that occurred in 2017 will likely have a strong impact in 2018.

"Lower credit interest rates will spur demand and the auto sector, and will benefit from good fiscal incentives," Viviek said.

According to him, the only negative factor in 2018 is the pressure to contain fiscal deficits and possible changes in energy prices.

"The fiscal deficit is still in the range of 2.2% of GDP, which can put pressure on tax revenues that encourage tighter compliance and the use of other means to increase tax revenues," he said.

News Comment

Today's Industry

Rashelia Pasca Dwiton - Student of MM Tech President University Batch 5

Sabtu, 06 Februari 2021 - 13:00 WIB

Cosmetics Product Development Effect on Marketing Strategy and Consumer Behaviour

They have changed the way they presented the ads, as well as the packaging of cosmetics product they launch.

Mechatronic Calotte Loader mWL.cs

Sabtu, 23 Januari 2021 - 17:50 WIB

Mechatronic Systemtechnik Unveils Proprietary Calotte Loader mWL.cs

A fully automated stand-alone system for transferring wafers between cassettes and calottes, the mWL.cs provides integrated device manufacturers (IDMs) an opportunity to increase yield and improve…

Synopsys Software

Rabu, 13 Januari 2021 - 18:40 WIB

Synopsys Recognised as a Leader in Static Application Security Testing by Independent Research Firm

Synopsys receives highest score among 12 SAST providers in current offering category.

Electro-Balancer (E-Balancer)

Rabu, 13 Januari 2021 - 16:00 WIB

ZASCHE Handling Rolls Out New Range of Electric Balancers

the E-Balancer is a versatile tool suited for a broad range of heavy-duty industrial applications.

Taylor Armerding, Software Security Expert at Synopsys Software Integrity Group (Photo by Linkedin)

Rabu, 13 Januari 2021 - 15:40 WIB

What is the Cost of Poor Software Quality in the U.S.?

And if you doubt its credibility, or that it applies to software, check out the latest report from the Consortium for Information & Software Quality (CISQ), in partnership with Synopsys, “The…