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Car Sales to Slow Down Toward Year End

20 September 2014 15:28 WIB

Sejumlah pengunjung melihat sejumlah mobil yang dipamerkan pada pameran otomotif di Trans Mall, Makassar, Rabu (22/2). TEMPO/Fahmi Ali

TEMPO.CO, Jakarta - Car sales are expected to drop towards the end of the year.

PT Honda Prospect Motor Marketing and Sales Director Jonfis Fandy said a number of factors caused the sluggish sales.

According to Jonfis Fandy, one factor hampers the rate of auto sales is a progressive tax increase imposed in October.

Another factor, he said, is the weakening of the exchange rate and the decline in economic growth trends in developing countries due to the planned increase in the interest rate the United States central bank.

Jonfis also said that the planned increase in the price of fuel by the end of the year is feared to affect people's purchasing power.

Data from the Indonesian Automotive Industry Association (Gaikindo) showed that car sales in the period of January to August this year reached 830. 398 units and the figure grew 4.8 percent over the same period last year. This growth trend declined compared to the January-August period of 2012-2013, which reached 10.9 percent.

Gaikindo General Secretary said Noegardjito said this year's sales target is set at 1.25 million units or only a 2.4 percent growth compared to that 2013, which saw as many as 1.22 million units sold.

Noegardjito further said that the revised economic growth of 5.5 to 5.9 percent of Bank Indonesia into 5.1 to 5.5 percent in May slowed down car market.

"Car sales are linked to inflation and interest rates," said Noegardjito to Tempo.

FERY FIRMANSYAH | AMIR TEJO




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