Indonesia to become ASEAN’s top car market

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Indonesia car factoryIndonesia’s auto market will probably overtake Thailand as Southeast Asia’s biggest in 1 or 2 years, the CEO of its biggest auto distributor PT Astra International, Prijono Sugiarto, said. He also predicted that total Indonesian sales in 2015 could hit 1.4 million after remaining roughly flat at 1.2 million this year, and he expects a growing share to be so-called low-cost green cars (LCGC), which his country’s car makers started producing last year.

“For LCGC, we are trying to increase production facilities. We are now at about 10-12,000 units per month. That would be nice to increase to 15,000 to 20,000 per month,” he said.

He also noted that car penetration in Indonesia is still only 40 cars per thousand people in a country whose population tops 240 million. The fast emerging middle class is the chief target for LCGC cars. Low-cost cars could account for up to 20 per cent of sales this year, he added.

Astra, Indonesia’s biggest listed company by market capitalisation, distributes cars for Toyota, Daihatsu  and Honda and is controlled by Singapore-listed Jardine Cycle & Carriage Ltd. Astra accounts for more than 50 percent of all auto sales in Indonesia.

Around 15 to 20 per cent of Astra’s car production is exported to other Southeast Asian countries, as well as the Middle East, South Africa, Mexico and Venezuela.

Astra also said it is eyeing expansion to Cambodia, Myanmar and Vietnam, focusing on automotive and financial-services industries.

Indonesia aims to eventually supplant Thailand as Southeast Asia’s biggest automotive production base. Investors from South Korea and Japan are bullish about the outlook for the Indonesian industry, according to Mahendra Siregar, head of the country’s investment board.

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Indonesia’s auto market will probably overtake Thailand as Southeast Asia’s biggest in 1 or 2 years, the CEO of its biggest auto distributor PT Astra International, Prijono Sugiarto, said. He also predicted that total Indonesian sales in 2015 could hit 1.4 million after remaining roughly flat at 1.2 million this year, and he expects a growing share to be so-called low-cost green cars (LCGC), which his country’s car makers started producing last year.

Reading Time: 1 minute

Indonesia car factoryIndonesia’s auto market will probably overtake Thailand as Southeast Asia’s biggest in 1 or 2 years, the CEO of its biggest auto distributor PT Astra International, Prijono Sugiarto, said. He also predicted that total Indonesian sales in 2015 could hit 1.4 million after remaining roughly flat at 1.2 million this year, and he expects a growing share to be so-called low-cost green cars (LCGC), which his country’s car makers started producing last year.

“For LCGC, we are trying to increase production facilities. We are now at about 10-12,000 units per month. That would be nice to increase to 15,000 to 20,000 per month,” he said.

He also noted that car penetration in Indonesia is still only 40 cars per thousand people in a country whose population tops 240 million. The fast emerging middle class is the chief target for LCGC cars. Low-cost cars could account for up to 20 per cent of sales this year, he added.

Astra, Indonesia’s biggest listed company by market capitalisation, distributes cars for Toyota, Daihatsu  and Honda and is controlled by Singapore-listed Jardine Cycle & Carriage Ltd. Astra accounts for more than 50 percent of all auto sales in Indonesia.

Around 15 to 20 per cent of Astra’s car production is exported to other Southeast Asian countries, as well as the Middle East, South Africa, Mexico and Venezuela.

Astra also said it is eyeing expansion to Cambodia, Myanmar and Vietnam, focusing on automotive and financial-services industries.

Indonesia aims to eventually supplant Thailand as Southeast Asia’s biggest automotive production base. Investors from South Korea and Japan are bullish about the outlook for the Indonesian industry, according to Mahendra Siregar, head of the country’s investment board.

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