Yessar Rosendar

Showrooms were closed for a week, leading to a decline in sales to 37,209 units, excluding motorcycles. Traders are still expecting vehicle sales to beat their 2009 targets. (Antara Photo)

Indonesian Vehicle Sales Fall 22% Amid Idul Fitri Slowdown

September’s vehicle sales, excluding motorcycles, tumbled 22.7 percent to 37,209 units from 48,105 the previous month. The decline was due to holiday-curtailed trading days, an automotive industry executive said on Tuesday.

Year-on-year, September vehicle sales were 32.6 percent lower than the same period last year, which saw 55,231 units sold.

“The decrease was due to the one-week Idul Fitri holiday, which meant no sales during that time. The fall in sales was entirely expected,” Bambang Trisulo, chairman of Indonesian Automotive Industry Association (Gaikindo), told the Jakarta Globe on Tuesday. “As for the full year, we expect sales to be down 20 percent compared with last year.”

Gaikindo makes no distinction in its sales figures between private and commercial vehicles, including trucks and buses.

Bambang said that he expected sales over the rest of the year to hold steady at 40,000 to 45,000 units per month, although there would be a slight decline at the end of the year because of the holidays. “There will be three or four holidays for Christmas and New Year, which will result in somewhat lower sales for December,” he said.

Bambang added that Gaikindo was optimistic vehicle sales would exceed the association’s target of 450,000 units for this year, following a recovery in demand midway through the year and improving economic and political outlooks.

In the nine months through September, sales stood at 337,470 units compared with 453,027 during the same period last year. A total of 607,805 units in 2008.

As for the 2010 outlook, Erwan Teguh Teh, an analyst at CIMB-GK Securities, said that new taxes due to come into effect next year could put a damper on the industry. “Progressive taxes on second-car owners and increases in luxury sales tax and fuel tax could make potential buyers think twice about investing in a new car,” Erwan said.

Toyota continues to dominate the passenger and commercial vehicle market on 14,299 units, down 22.3 percent from 18,403 units in August, followed by Daihatsu on 5,667 units, Mitsubishi on 4,728, and Honda on 4,155.

Erwan said that the Idul Fitri break would also have wreaked havoc with motorcycle sales. “Bike sales will be down, as the factories and showrooms were shut for the holiday,” he said.

The Indonesian Motorcycle Industry Association (AISI) is expected to release its sales figures in the coming days.

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