Why Car Makers Postpone the Release of Their New Products

TEMPO.CO, Jakarta - Deputy Managing Director 2W Suzuki Indomobil Sales Endro Nugroho said the weak economic conditions and the declining purchasing power of consumers makes car manufacturers decide to delay the launch of its new products.  “At least until there are signs of recovery,” Endro said in Jakarta on Monday, July 6.

A logical thing, according to Endro, is when current sales rate is decreased by nearly 25 percent and manufacturers choose to restrain. Because its difficult to expect good results in the midst of the current situation.

“Although each brand has its own policy, some of them must launch new vehicles according to schedule, some of them don’t,” said Endro.

According to Endro, Suzuki currently choose to wait and see.  “Until the buying power starts to improve.”

Based on the datas from the Indonesian Motorcycle Industry Association (AISI), motorcycle sales in Indonesia along 2015 have plummeted by 24.6 percent.  During the first five months of 2015, motorcycles sales reached 2.6 million units.

Whereas in the previous year, motorcycle sales reached a staggering 3.4 million units.  On the basis of the decline, AISI have revised annual sales target from 7.7 million to 6.7 million units.

The last two months sales of Suzuki products showed an increase of 3 to 4 percent, but its because of the Ramadan and Eid momentum.  “The realization is that sales are up by just 5 percent, still far behind from last year,” Endro said.

Endro is uncertain that buying power will go up and will match last year’s sales.

“It should be noted that 70 percent of automotive consumers rely on credit schemes,” he said.

“Unless interest rate is lowered, the people will be thrilled.”

PRAGA UTAMA