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.