Bintraco Dharma (CARS) Optimistic Positive Car Sales Growth in 2024

KONTAN.CO.ID - JAKARTA. PT Industri dan Perdagangan Bintraco Dharma Tbk (CARS) is optimistic about car sales this year. This optimism aligns with the national car sales target of 1.1 million units in 2024.

CARS sees positive growth opportunities in 2024, especially in the company's operating regions of Central Java and the Special Region of Yogyakarta. These regions are influenced by industrial, educational, and tourism activities.

Bintraco Dharma's Investor Relations & Corporate Communication, Yosef, said that Gaikindo's confidence in the increase in national car sales in 2024 also influenced the target. Support comes from the emergence of new brands in the Indonesian automotive market and the continuous release of new models by existing automotive manufacturers.

"The car sales target for 2024 is expected to be in line with Gaikindo," Yosef told KONTAN on Wednesday (13/3).

Meanwhile, the great potential of the electric car (EV) ecosystem is also in the spotlight, especially with nickel reserves that can be utilized to support the industrialization of EVs in Indonesia.

"It is hoped that Indonesia will continue to develop in 2024 with the start of the development of the domestic EV ecosystem, including the production and assembly of batteries for electric cars," he continued.

To achieve the sales target, CARS implements a sales strategy where the principal leads market movements through a Multi-Pathway strategy by providing electrification products ranging from Hybrid Electric Vehicles (HEV), Plug-in Hybrid Electric Vehicles (PHEV), Battery Electric Vehicles (BEV), and Fuel Cell Electric Vehicles (FCEV) to meet customer needs.

CARS also provides convenience for customers to service their cars and charge batteries at the company's official dealers.

In addition, CARS also collaborates with many financing and insurance institutions to provide convenience and comfort for customers in their vehicle ownership experience. In addition, CARS also conducts various marketing programs according to conditions and needs in the market.

Not only sales strategies, CARS also considers the importance of dealers to serve consumer needs. Currently, CARS has 24 Nasmoco dealers operating in the Central Java and DIY regions. The existence of these dealers is still considered capable of serving consumer needs in these regions.

"For the addition of new dealers with the principal, the opportunity is not closed if there is a need for future development," he concluded.

For information, CARS recorded car sales of 14,693 units as of September 2023 which grew 16% year on year (YoY) compared to the same period the previous year which was 12,681 units.

CARS Chart by TradingView

Based on product segments, CARS' sales contribution in the Low-Cost Green Car (LCGC) segment increased from 20% in 2022 to 25% in the third quarter of 2023. Meanwhile, the contribution of the Multipurpose Vehicle (MPV) segment also increased from 50% in 2022 to 51% in the third quarter of 2023.

The increase in contribution in each of these segments is in line with CARS' revenue prospects in the automotive sector. Therefore, CARS remains optimistic that the car sales target of 20,000 units by the end of December 2023 can be achieved.