Indonesian new vehicle sales vanish by over 90% in April on virus outbreak

18, May. 2020

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JAKARTA, NNA – Indonesia’s new vehicle shipments to dealerships in April nosedived over 90 percent as retailers declined to stock reserve inventory with the sluggish car purchasing demand due to the new coronavirus outbreak.

In Southeast Asia’s biggest automobile market, the leading automakers’ new vehicle wholesale numbers dropped 90.4 percent from a year earlier to 7,539 units in the month, according to data compiled by NNA.

The negative growth figure shows a wide gap with the 62 percent year-on-year decrease on a retail sale basis in the same month, highlighting weak sourcing activities by car dealers.

Toyota Motor Corp., Daihatsu Motor Co., and Honda Motor Co., the three largest passenger carmakers in the country, all suffered more than 90 percent plunges in shipment in April, registering 2,197, 1,330, 1,183 units sold, respectively, based on data obtained from each carmaker by NNA.

Three major commercial vehicles makers – Mitsubishi Fuso Truck and Bus Corp., Isuzu Motors Ltd., Hino Motors Ltd. – were hit by the same blow from dampened sentiment for sourcing trucks in the reporting month amid the Covid-19 pandemic, suffering 71 to 89 percent year-on-year drop in shipment to some 300 units each in April, according to the compiled data.

They echoed that they foresee weak truck demand due to falling supply of building materials and machinery from China to Indonesia amid the global novel coronavirus outbreak.

In the January-April period, new vehicle sales on a retail basis fell 28 percent from a year ago to 244,762 units, according to data of the Association of Indonesia Automotive Industries (Gaikindo).

Gaikindo Co-Chairman I Jongkie D. Sugiarto told NNA last Friday, “April is still quite good sales for wholesale and retail sales. Our prediction in May will be worse because of the PSBB (Large Scale Social Restriction) policy so that all showrooms are forced to close.”

In early April, the industry body had lowered its 2020 projection, from 1,100,000 units to 600,000 units.