Budi Darmadi, the director general of the high-technology industries, said Indonesian vehicle sales may reach 2 million units when per capita income reaches $5,000 per year.
Budi made the comments on the sideline of the inauguration of the Mercedes-Benz Indoneisa M-Class production in Jakarta.
Indonesia’s car sales jumped 24 percent in October, posting record monthly sales as buoyant middle-class customers went shopping amid low interest rates.
New car sales by the country’s automakers rose to 106,807 units last month, according to data from the Association of Indonesian Automotive Manufacturers (Gaikindo).
Car sales, a key element of consumer spending, hit a record of 102,512 in July and then slowed significantly in August.
October car sales lifted the year-to-date total to 923,132 units, up 3.2 percent from the same period last year. The numbers have put the country on track to meet its car-sales target of more than 1 million units this year.
“Sales in November will lift the country to reach more than one million units and 1.1 million units by the of the year,” Budi said.
In recent years, Indonesia’s car sales have been on the rising trend due to increasing demand.
The country has been seeking to become the automotive hub in the Southeast Asian region, which is currently led by Thailand.
Commenting on the target, Jongkie D. Sugiarto, an executive chairman at Gaikindo, said the association prefers to have a conservative car sale growth target in the coming years.
Jongkie, who is also president director of Hyundai Mobil Indonesia, said car sales in Indonesia are forecasted to grow at 10 percent to 15 percent per year.
“So, we put the conservative scenario on say 10 percent to 15 percent per year. That means in 2017, we will be able to reach 1.75 million car units,” Jongkie told the Jakarta Globe.
Jongkie said accelerating growth — hovering at around 6 percent to 7 percent, should help drive car sales in Indonesia.
He also said that the country’s target to reach 1 million units this year will be achieved.
Car retailers in Indonesia include Astra International and Indomobil Sukses International.
Jakarta Globe | Faisal Maliki Baskoro | November 22, 2012