Car sale drops by 13.7%: Gaikindo

JAKARTA. The chairman of the Association of Indonesian Automotive Manufacturers (Gaikindo), Sudirman M. Rusdi, said Indonesia’s car sales declined by 13.7 percent in 2015 compared to the previous year.

“Last year’s sales reached 1.2 million cars. We have revised our sales forecast because up until May, retail sales dropped by 13.7 percent, so we predict that this year’s car sales will reach only 1.1 million,” said Sudirman as quoted by Antara in Jakarta on Monday.

He was speaking after he met with Vice President Jusuf Kalla at the Vice Presidential Office to report the organizing of Gaikindo International Autoshow 2015, scheduled to be held on Aug. 20.

Citing Gaikindo data, Sudirman said during the January-May period, Indonesia’s wholesale trade reached 443,000 cars, down 16.6 percent from 531,000 in the same period last year. Meanwhile, retail sales from January to May reached 432,000 cars, down 13.7 percent from 501,000 in the same period last year.

Sudirman said the declining purchasing power of people led to declines in Indonesia’s car sales this year. “We’ve known that prices of several export commodities have declined. The economy of several areas across Indonesia has slowed down; thus, the weakening of people's purchasing power has become the prime factor of the current sluggish car sales,” he said.

Around 300 participants and 35 brands are expected to participate in Gaikindo International Autoshow 2015. Kalla is scheduled to open the international automotive exhibition.