MPMX Books Sales of Two Wheel Vehicles of 843,364 Units

By : Hariyanto And Aldi Firhand. A | Monday, April 09 2018 - 20:08 IWST

Motor vehicle industry

INDUSTRY.co.id - Jakarta - In the business segment of Distribution and Retail of two-wheeled vehicles, PT Mitra Pinasthika Mustika Tbk (MPMX) through its subsidiary MPMulia, booked sales of 843,368 units. Business market share continued to increase in 2017, although sales volume decreased by 7.5% over the same period.

The decline was mainly due to the high number of natural disasters affecting local economic conditions and market sentiment, as well as an increase in vehicle registration costs in the first quarter that impacted sales. The company's revenue decreased 3.2% to Rp 14 trillion
compared to last year.

In the business of Distribution and Retail of four-wheel vehicles, MPMAuto sells as many as 1,711 Nissan-Datsun cars through 5 Nissan-Datsun dealers across Indonesia. This resulted in a 64% decrease from the same period last year, however, through cost savings and restructuring, the company was able to reduce losses to Rp 52 billion or savings of 51% from 2016.

From the After-market segment, or vehicle spare parts, MPMX's subsidiary, PT Federal Karyatama (MPMLubricants), which manufactures and distributes Federal Oil and Federal Oil lubricants, recorded 61.3 million liters of lubricant sales volume, or 3% lower than last year.

Revenue increased by 0.4% and net income was stable compared to the same period in 2016. PT Federal Karyatama recently also received the award for Best Company to Work For in Asia from the HR Asia Awards 2017, while Federal Oil products received the Indonesian award Best Brand Award (IBBA) from SWA magazine and renowned research institute in Indonesia, MARS.

In addition, MPMParts, a supplier and distributor of various spare parts and after-sales service for two-wheeled and four-wheeled vehicles, generated a positive revenue growth of 14% from 2016.

As for the Transport segment, the number of MPMRent fleet rental fell 9% to 12,843 units compared to last year. The Company takes efficiency measures and increases asset productivity by reducing new vehicle purchases and selling unused vehicles.

Although the Company is satisfied with the fundamentally improved operation, the Company has decided to take a more sensible approach to higher cost reserves on receivables and inventories.