KONTAN.CO.ID-JAKARTA. As we enter the beginning of 2024, the Indonesian automotive market appears to be sluggish. This is indicated by the shrinking national car sales last January.

According to data from the Association of Indonesian Automotive Industries (Gaikindo), wholesale sales (from factory to dealer) were recorded at 69,619 units in January 2024, or a decrease of 26.1% year on year (YoY) compared to the sales realization in January 2023 which was 94,270 units.

Along with that, retail sales (from dealer to consumer) of national cars also decreased by 13.9% YoY to 78,214 units in January 2024, from the previous 90,892 units.

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Every month, the wholesale sales of national cars in January 2024 were 18.4% lower than the sales realization in December 2023 which was 85,586 units. Retail sales of national cars in January 2024 were also 12.7% less than the achievement in December 2023 which was 89,586 units.

The Chairman of Gaikindo, Jongkie Sugiarto, stated that the decline in car sales in Indonesia last month was due to the effect of the national economic growth which also slowed down. High benchmark interest rates and inflation also made some consumers choose to hold back or postpone the purchase of new cars in early 2024.

"Leasing companies also tightened the provision of motor vehicle loans, thus affecting sales trends in the market," said Jongkie, on Monday (19/2).

Despite this, Gaikindo remains confident that national car sales will increase again in February 2024 and onwards. This is supported by several new brands that are enlivening the domestic automotive market. Long-standing automotive manufacturers also continue to aggressively release new models to attract consumers.

Reflecting on this, Gaikindo is confident that the target of national car sales of 1.1 million units in 2024 can be achieved. "We still hope that car sales figures can increase in the coming months," Jongkie concluded.

Editor: Syamsul Azhar