Indonesian auto industry fears 42% drop in 2020 car sales to 600,000 units: report
JAKARTA, NNA – An Indonesian auto industry body fears a plunge in new vehicle sales this year as the spread of coronavirus in the country would dampen consumer sentiment.
The Association of Indonesia Automotive Industries (Gaikindo) predicts sales might plummet 42 percent from a year earlier to around 600,000 units, Co-Chairman I Jongkie D. Sugiarto was quoted by Investor Daily as saying on Sunday.
The industry group had initially set a 2020 sales target of 1.08 million units, up 5 percent from 2019.
Jongkie, who is from a local arm of South Korea’s Hyundai Motor Co., foresees a sharp drop in car sales in April and May, adding he fears that annual car sales might even fall short of 600,000 units, the local media report said.
Purchasing power would weaken through the Muslim holy month of Ramadan from late April and following the festive Lebaran season as the global Covid-19 pandemic is also hitting Southeast Asia’s largest economy, he said in the report.
In the January-February period, new vehicle sales dipped 3 percent from a year ago to 159,997 units, according to Gaikindo.
In Indonesia, at least 2,491 confirmed cases of Covid-19 infection and 209 deaths have been reported as of noon on Monday, according to the National Disaster Management Agency (BNPB). The death toll is the highest among Southeast Asian nations, according to data compiled by NNA.