Indonesia auto sales expected to breach 1m units in 2016 – passenger vehicle sales up, commercial down

Toyota Calya GIIAS 3

It was a fruitful few days for us at last week at BSD City, camping in the south-west Jakarta suburb to bring you live coverage of the Gaikindo Indonesia International Auto Show (GIIAS) 2016.

It’s our second year at ASEAN’s largest motor show in this current format and name. GIIAS is endorsed by Gabungan Industri Kendaraan Bermotor Indonesia (Gaikindo), the Indonesian counterpart of our Malaysian Automotive Association (MAA). Gaikindo previously worked with Indonesia International Motor Show (IIMS) organisers for the country’s annual car show, but has since last year gone its own way with a different promoter. Like the previous edition, GIIAS 2016 is being held at the modern ICE facility in BSD City.

The title of “ASEAN’s largest show” usually leads us to think of Bangkok, but it’s GIIAS that actually has the honour with 91,557 square metres of floor space, 60,000 of that indoors. But the more important fact is that Indonesia has surpassed the “Detroit of the East” as the largest auto market in ASEAN, with 2015 sales surpassing one million units. Like the market, the show is becoming more important each year.

GIIAS Motor Show Stands

Gaikindo bosses told paultan.org that this year’s total sales are expected to not just hold firm, but increase 5% to 1.05 million units, despite the sluggish global economy that is also affecting our export-oriented region. As a major exporter of commodities, Indonesia’s economy is also affected, which has brought commercial vehicle sales numbers down. However, the consumer market is expected to make up for the CV shortfall, according to Gaikindo chairman Yohannes Nangoi.

Yohannes, who is also the boss of Isuzu in Indonesia, explained to us that the association’s optimism is based on factors such as the current tax amnesty programme by the Indonesian government, as well as a planned reduction of interest rates. There will also be a reduction of initial downpayment for a car, which currently stands at 30% (70% max loan). It will happen this year and is expected to boost private vehicle sales. Auto sales hit a peak of 1.2 million units in 2014.

Nothing like new models to boost the market, too. Market leaders Toyota and Daihatsu gave the Toyota Calya and Daihatsu Sigra twins their public show debuts at GIIAS 2016, and the budget MPV is the car of the moment in this republic.

Daihatsu_Sigra_Deluxe-12

Indonesia is an MPV dominated market, and the Calya is a budget seven-seater that slots in below the top-selling Avanza. The 1.2L Indonesian Low Cost Green Car (LCGC) is priced from just 129.65 juta rupiah (RM39,662), while the Sigra – which has a 1.0L option and lower positioning – can be had from just 106.6 juta rupiah (RM32,550). Both are manufactured by PT Astra Daihatsu in Karawang with 94% local content.

Indonesia has all the ingredients to maintain its position as ASEAN’s largest car market. It has a large population (the fourth largest in the world) and a low car ownership ratio that has plenty of room to grow (lower than Thailand, Malaysia is highly saturated in comparison, projected TIV this year is 580k). Gaikindo projects that total sales will reach two million units by 2025, and very few would bet against that from happening.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • While Malaysia consumer market expected to be continued softening. Thanks to Ah Jib Gor

    Like or Dislike: Thumb up 58 Thumb down 57
    • Indomee 6hr epic jams will become epicer 10hr. Thanks to jokowi gor. oh wai…

      Like or Dislike: Thumb up 59 Thumb down 60
      • Same L00 on Aug 17, 2016 at 3:27 am

        Use your brain, epic jam is because of insufficient highway and infrastructure, not because of a lot of cars.
        Because of traffic jam you don’t travel?
        Because of food poisoning you don’t eat?

        But 1 thing is fact: because of poor quality people don’t buy Proton!

        Like or Dislike: Thumb up 24 Thumb down 9
        • U havent been to Indomee have u? Pity.

          Like or Dislike: Thumb up 0 Thumb down 0
        • Becoz they din have visionary leader who massive invest in MRTs b4 its too late.
          Now jokowi kau kau pump moneh into MRT oso cannot help

          Like or Dislike: Thumb up 7 Thumb down 4
          • Same L00 on Aug 17, 2016 at 6:15 pm

            The amount of money confiscated in US can build how many MRT rail here? pui~~~

            Like or Dislike: Thumb up 0 Thumb down 0
    • Paul Smith on Aug 16, 2016 at 11:27 pm

      1Mil sales only equal to 0.003% out of Indonesia population whilst Malaysia last year auto sales was 0.01% from our total pop. So which one is better?

      Like or Dislike: Thumb up 12 Thumb down 2
      • Same L00 on Aug 17, 2016 at 3:33 am

        Proton wanna be “Global” car maker? Try sell 100 units in Indonesia first!!!
        Every hype about Proton is pure Sendiri Cakap Sendiri Syok or new excuses to beg another RM1.5bil pocket money.

        Like or Dislike: Thumb up 10 Thumb down 1
      • Das Auto on Aug 17, 2016 at 7:14 am

        Imagine if IN achieves that percentage, there would not be any road left to drive!

        Like or Dislike: Thumb up 2 Thumb down 0
      • It depends. Does indonesia offer 9 year loans for cars? Honest question

        Like or Dislike: Thumb up 7 Thumb down 0
      • Fanta Strawberry on Aug 17, 2016 at 10:15 am

        Our market is highly saturated. Used car dealers having so many stocks

        Like or Dislike: Thumb up 1 Thumb down 0
      • sway_away on Aug 24, 2016 at 4:09 pm

        It means that the sales in Indonesia will have more and more potential to increased, if we compare by car-per-population ratio

        Like or Dislike: Thumb up 0 Thumb down 0
    • Kunta Kinte on Aug 17, 2016 at 7:48 am

      At least Indon Government Toyota don’t rip people off with super high prices. The problem with Malaysia, UMW is Government owned. So, we Malaysians got no place to complain about the high car prices and low specs.

      In Indonesia, The Toyota there is so much cheaper and higher spec.

      Like or Dislike: Thumb up 3 Thumb down 8
      • Ini semua salah Party Hard crony. Say NO to toyota! But then u continue makan maggi. Haih, so pity.

        Like or Dislike: Thumb up 11 Thumb down 10
        • U forget? Proton juga Party Hard Crony. So continue to eat nasi lemak?

          Like or Dislike: Thumb up 0 Thumb down 3
          • Yup. Semua Part Hard makan nasi lemak, makan manggis, makan undersea tunnel, makan SUKe, makan sandmine, makan…. mak oii! rupanye makan banyak jugak! xsampai 10 thn pun! Ch1841 betui mereka!

            Like or Dislike: Thumb up 0 Thumb down 0
  • I thought Proton is best seller in Indon due to superior quality?

    Like or Dislike: Thumb up 2 Thumb down 1
    • Same L00 on Aug 17, 2016 at 3:28 pm

      If quality so good why no Malaysians want to buy it? Use your brain!

      Like or Dislike: Thumb up 0 Thumb down 0
  • karam singh on Aug 16, 2016 at 10:47 pm

    Honda not even mentioned in this article. Honda is nothing there where Toyota easily sells 300k units and daihatsu another 200k

    Like or Dislike: Thumb up 0 Thumb down 0
  • Same L0rr on Aug 17, 2016 at 9:26 am

    At least Toyota & Perodua have affordable vehicle. Not like Proton, KIA & Hyundai. Expensive & bad RV at all..

    Like or Dislike: Thumb up 20 Thumb down 0
  • Hamid on Aug 17, 2016 at 10:07 am

    Protek Protek John.
    In Msia we let MAI and Madani do the talking.
    Living in 2016 but NAP 2015 still work in progress. Bercukurlah !!

    Like or Dislike: Thumb up 19 Thumb down 0
  • last time Preve Csegment 1.6 IAFM full specs RM60k.

    now we can only can get Persona Bsegment 1.6 full spec RM60k.

    Proton Naik Harga Lagi..

    Like or Dislike: Thumb up 8 Thumb down 0
    • Website says IAFM high spec is 63k. But this Persona2.0 is 61k & VVT engine, which is more expensive than IAFM. So pricing is justified.

      Like or Dislike: Thumb up 1 Thumb down 0
    • Same L0rr on Aug 18, 2016 at 10:04 am

      Proton Preve IAFM CVT & Proton Persona CVT is the same! Campro VVT Engine & CVT bising Punch Powertrain! No RV! Price RM60K or RM50K, RM40K, no RV at all..

      Like or Dislike: Thumb up 0 Thumb down 0
 

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