Toyota still leads Indonesia auto market

By Ali Budiman

Toyota, Indonesia auto market leader

Toyota still leads Indonesia auto market 2009 with 62,000 unit’s sales or 36% market share. Total domestic cars sale in January up to May 2009 period was 170,677 units, decreased -28% from 237,928 units in same period last year. In May 2009 alone total cars sales booked 35,818 units, increasing 4% compared to that 34,600 units in April 2009.

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admin Indonesia Cars News Indonesia Auto Market, Japanese Brand, Toyota Cars Sales

Why Indonesia Auto Market dominated by MPV?

By Ali Budiman

Toyota Avanza Display at Auto2000 Showroom

Indonesia auto market has unique characteristic. If Thailand auto market is dominated by Pick Up/Double Cabin (Mitsubishi L200, Ford Ranger, Toyota HiLux) and Malaysia auto market is dominated by Sedan (Proton Saga, Toyota Vios, Honda City), thus Indonesia auto market is dominated by MPV, such as: Toyota Avanza.

Why Indonesia Auto Market dominated by MPV?

Refer to various literatures about Indonesia auto market, we can summarize that why Indonesian people buy Multi Purpose Vehicle (MPV) are “They need a car to bring or carry on all family members/friends.” Dad & Mom, Children, GrandPa & GrandMa, Uncle & Aunty, even the nanny.

During weekdays, most of Indonesian people use they own cars for: commute to workplace, transporting children to school, and business purpose. During weekend, they use the cars for one day trip for leisure (with family/ friends); shopping with family, hang out with friends, going out for hobbies and traveling with family/ friends.

For instance, most of Jakarta people go to Bandung (about 200 km) almost every weekend to hunting clothes in “Factory Outlet” or foods in various nice places in Bandung.

Refer to these purposes, so a car must be low fuel consumption but powerful and easy to ascend in height. And since MPV is used for family trip during weekend for long distance travel, service network availability becomes a concern especially outside Jakarta City. And the one important thing is spare part. Spare part must be easily available in part business center like such as: Asem Reges market, Kemayoran area, Atrium Senen market, etc.

Why MPV segment dominated by Japanese Brand?

Yes, Indonesia auto market has unique characteristic. In the mind of Indonesian people, each brand has certain perceptions, associate to quality. Toyota, Suzuki, Honda, Daihatsu, Nissan, Mitsubishi as Japanese brand: highest perceived quality, affordable price and good resale value. While European brand; BMW, Mercedes-Benz, Volvo, Peugeot perceived expensive, high maintenance, and low resale value. And Korean brand; Hyundai, Kia has perception as low resale value.

These perceptions makes Japanese brand dominates Indonesia auto market, included MPV segment. Toyota Avanza, Daihatsu Xenia, Toyota Kijang Innova, Nissan Grand Livina, Suzuki APV, control almost 100% MPV market share.

Related articles :

1. MPV models makes up 38% of Indonesia Car Sales in 2008.

2. Toyota Avanza, Indonesia Top Selling Cars.

3. New MPV in 2009.

4. Indonesia Cars Sales 2009 still hopeful.

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Indonesia Cars Sales 2009 still hopeful

By Ali Budiman

Cars exhibition (Sales promotion) to boost cars sales volume

Global financial and economic crisis is still looming, but domestic auto market still to give hope. After a series of downturn since late 2008, sales picked up in February 2009, and persistent about 34,000 units/month sales till April 2009. Total domestic cars sale in January up to April 2009 period was 134,851 units, decreased -28% from 187,210 units in same period last year.

Five Japanese brands took the lead during the 2009’s sales, namely Toyota, Daihatsu, Mitsubishi, Suzuki, and Honda. Toyota grabbed 35.4% of total domestic sales with 47,797 units. This means -24% decreases compared to 62,948 units in the same period of 2008. In April 2009 alone Toyota booked 12,105 units of sales, decreasing -32% compared to that 17,890 units in April 2008.

Meanwhile, Daihatsu made impression sales and overtook Mitsubishi in second place in domestic market. Daihatsu cars sales in January up to April 2009 reached 23,970 units and seized 17.8% market share. This means increased 9% compared to that 22,009 units in Jan – April 2008 period.

Mitsubishi came third and sell 18,169 units and controlled 13.5% market share. Suzuki came in the fourth place with total sales 13,426 units in Jan – April 2009, grabbing 10% of the domestic market. And Honda followed suit in the fifth place with total sale of 9,803 units and controlled 7.3% market share.

Listed below is the TOP 20 BRAND in 2009, January to April period:

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Indonesia Cars Sales 2008 grow 40% from 2007

By Ali Budiman

Indonesia Cars Sales Volume 2008 vs 2007

Indonesia Cars Sales in 2008 reaches 607,770 units, an increase by 40% from the sales in 2007 at 434,313 units.

The sales of cars in 2008 have exceeded the target estimated by GAIKINDO, Gabungan Industri Kendaraan Bermotor Indonesia (Indonesia Automotive Association) of 520.000 units.

Based on the data from GAIKINDO it is revealed that the sales of cars in 2008 was increasing every month.

The number of sales in January was 41,375 units, February was 47,466 units, March 46,714 units, April 51,655 units, May 50,718 units, June 54,707 units, July 60,830 units, August 58,491 units, September 55,231 units and October 54,813 units.

In the last two months the sales of cars in Indonesia was declining, November 46,119 units and December 39,651 units.  The economical crisis that hit both the USA and Europe, have impacted on the automotive industry in Indonesia.

Since November 2008, the interest rate from Bank Indonesia increase from 8.75% to 9.5%.  This resulted in the decline of car sales, due to the financial/leasing companies have raised their credit interest rate and tighter credit control towards consumers, while 80% of car sales in Indonesia is paid by credit using leasing companies.

Further more, the exchange rate of the Indonesian Rupiah against the US Dollars weakens from Rp 9,500 to Rp 12,000 per 1 USD.  Consequently, car manufacturers are forced to raise their retail prices by 20%.

Indonesia Cars Sales Volume 2008 By Brand

Car sales in Indonesia are still dominated by Japanese brands.  Toyota is still leading the automotive industry in Indonesia with total sales of 211,909 units or 35% market share.  Mitsubishi is second with total sales of 87,524 units or 14.4% market share.  Followed by Daihatsu 78,041 units (13%), Suzuki 73,066 units (12%), Honda 52,500 units (8.6%), Nissan 31,881 units (5.2%), Isuzu 25,325 units (4.2%), Hino 14,227 units (2.3%).  Lastly, other 20 brands sharing total sales of 33,297 units (5.5%).

Almost every brand experienced a significant increase of sales in 2007.  Like Toyota who enjoyed an increase up to 41% from the sales in 2007 of 150,631 units.  Even Daihatsu’s sales increased up to 50% from its 51,597 unit sales in 2007, dethroning Suzuki from the top 3 position in the Indonesian automotive industry.

But what about the sales in 2009?

The sales of cars in 2009 are expected to decline up to 30%.  GAIKINDO predicted total car sales of 430,000 units in 2009.  This is due to the global economical crisis that has yet to recover from, interest rate that has yet to decrease in a significant amount and the Indonesian currency that is still fluctuating.

Especially in 2009, where Indonesia will be helding it’s once every 5 years presidential election and legislatives.

We shall see whether the car sales in 2009 will be able to withstand the political and economical conditions.  Hopefully it will.

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