LCGC becomes the backbone of automotive industry

JAKARTA. Automotive industries experience decreases in car sales in September 2016 compared with August 2016. Data from the Association of Indonesian Automotive Industries (Gaikindo) show that the car sales in September 2016 has dropped by 3,3% to only 93,136 units compared with August 2016.

However, some brand holder agents (APM) booked a slight increase in the number of sales during January-September 2016 by 2.4% to 783,450 units compared with the same period in 2015. The APMs, which booked the sales increase, are having local assembled products of low cost green car (LCGC). The APMs include Toyota, Daihatsu, and Datsun.

As of September 2016, the sales of Toyota have increased by 14.2% to 275,071 units. “As of September, we have secured 36% of market shares”, said Vice President Director of PT Toyota Astra Motor (TAM) Henry Tanoto.

Henry expects that Toyota can maintain the market shares at the level of 33% by the end of 2016. The Toyota sales is mainly supported by a brand of LCGC, Calya, which was released in the last August 2016. Three months after the release, Toyota has sold 20,364 units of Caly
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LCGC also became the major contributor of the sales of PT Astra Daihatsu Motor. Three months after the release, a brand of LCGC, Sigra has been sold as much as 13,469 units. “Demands for Sigra remain high,” said Head of Marketing and Customer Relation Division at Daihatsu Hendrayadi Lastiyoso.

Meanwhile, the brand of LCGC SUV Honda BT-V has supported to a 22.4% increase in Honda sales to 117.849 units along the year of 2016. “BR-V has been well welcomed since its first launching”, said Director of Marketing & After Sales Service at PT Honda Prospect Motor (HPM) Jonfis Fandy. During January-September 2016, BR-V sales comprised 34% or 31,269 units of total car sales of Honda.

During the same period, the number of Ford’s car sales dropped by 92.3% to 589 units. The number of sales decreased after Ford moved out from Indonesia at the beginning of 2016 and appointed a third party to continue its business in Indonesia.

Aside of Ford, another American brand Chevrolet, which is produced by General Motors, also suffered decreases in car sales in Indonesia’s market. As of September 2016, Chevrolet sales dropped by 50.9% to 31,795 units. General Motors itself had shutdown Chevrolet factory in Bekasi in 2015.

The sales of South Korean brand Kia Mobil Indonesia also dropped by 61.5% to 1,024 units. Until the news was revealed, Public Relations Manager at Kia Motors Indonesia Lawindri Liu has not yet given confirmation on the number of car sales of the company.

(Muhammad Farid/Translator)