Heaptalk, Jakarta — As of mid-2024, the automotive market, particularly the car industry, is struggling to grow. The Association of Indonesian Automotive Industries (Gaikindo) recorded that from January to July 2024, new car sales reached 588,688 units, a 16.78% decline compared to last year.
Anton Jimmi Suwandy, Marketing Director of PT Toyota-Astra Motor (TAM), predicts that national car sales will peak at around 900,000 units. This is based on the reduction in market decline at the start of the second half of the year. “If we look from the beginning, the drop was almost over 15-20%. Now, the market decline is around 12% and may continue to decrease to 11%, 10%, or even 9%,” he said.
Thus, it will be difficult to achieve better growth than last year, when wholesales reached 1.005 million units and retail sales were around 998,000 units. Anton added, “But at least the decline isn’t deeper, and hopefully, as the political situation improves, with the inauguration of a new president and a new cabinet in October, things will become more stable.”
In addition to these factors, several elements influence decisions when purchasing new cars. Fortunately, at the end of the first half, automotive exhibitions helped boost sales slightly. However, the market is still overshadowed by geopolitical conditions and potential policy changes, causing some segments to take a wait-and-see approach.
On the other hand, automotive observer Argo from Surabaya, who was contacted by phone on Monday (09/09), said that the market could potentially be pushed to reach 1 million units, but it would require a stimulus, such as the PPnBM incentive given in 2021. “If there’s an incentive, people who were not planning to buy a car might become interested. Especially for models like the Avanza, when they offered the PPnBM incentive, discounts reached Rp30 million to Rp40 million, which was significant,” Argo said.
With four months left before the end of the year, incentives are considered the most effective way to accelerate the market. Additionally, Riyanto, Wuling Marketing Manager highlighted the important role of LCGC models, which helped prevent sales from dropping further this year.
