Gaikindo Increases Growth Projection

JAKARTA - The Indonesian Motor Vehicle Industry Association (Gaikindo) raised its projected growth in the car market this year from 1.9% to 5%, due to optimism with the government's economic growth.

"It is estimated to increase by 5%," said the Chairman of the Association of Motor Vehicle Industry Indonesia (Gaikindo) Jongkie D. Sugiarto told us on Monday (2/4).

He explained that the growth of commercial vehicle sales is still the main driver. Passenger car sales are expected to grow slightly below 5%.

According to him, infrastructure development initiated by the government can affect economic growth and lead to per capita opinion of Indonesian society.

Based on data from Gaikindo, sales of manufacturers to dealers or wholesales this year reached 1.08 million units. With sales predicted to grow 5%, this year's sales of 1.13 million units.

Sales of cars in the first two months of this year reached 190,236 units, up 4.86% compared to January-February 2017.

Market growth is aided by commercial vehicles. 4x2 passenger vehicles grew 5% to 102,814 units, sedan and 4x4 declined by 19.04% and 5.08%, respectively.

Commercial vehicles pickup, truck, and cabin double recorded double-digit growth, respectively 13.69%, 37.89%, and 94.62% respectively. On the other hand, buses boosted negative performance or decreased 21.92%.

Earlier this year, Gaikindo expects sales of trucks and buses to grow by 45% throughout 2018.

Commercial vehicle sales growth may continue if the government continues if the government continues to build infrastructure throughout the year.