Car Sales Likely to Tumble due to Fuel Price Hike

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  • TEMPO/Eko Siswono Toyudho

    TEMPO/Eko Siswono Toyudho

    TEMPO.CO, Jakarta - Increased fuel prices are estimated to bring down the sales of motor vehicles nationwide. Sudirman M. Rusdi, the chairman of the Association of the Indonesian Automotive Manufacturers (Gaikindo), said car sales were likely to drop in the next few months.

    “Sales will decrease about 10 to 15 percent in the next one to two months. After that, they will return to normal,” said Sudirman on Monday.

    Sudirman said the prediction was based on Gaikindo’s experience in the previous years—that the growth of the auto market depends on the national economic growth. "So there's nothing special," he said.

    He went on that the auto industry could grow by 24.3 percent in the past six years with a GDP of around 5.6-5.7 percent. “However, when the GDP is only 5.1 percent, we are under pressure.”

    Car sales this year saw 1.2 million units, while the 2015 projection is the same as 2014's. “It’s based on the inflation rate, interest rate and exchange rate,” he said.