From Government of Indonesia

Astra Sees Auto Market Growing 10%

PT Astra International sees the country's vehicle and motorbike sales expanding by 10% this year as economic conditions start recovering, its president director, Michael D Ruslim, said on Friday (12/01/07).

Astra, the country's largest car distributor, hopes to maintain its market share this year. "In the final three months of 2006, we have seen a pick-up in the sales trend. We are hoping this trend will continue," Ruslim told Reuters on the sidelines of the launch of a new vehicle.

The automotive industry has been hit by high interest rates and weak consumer purchasing power in the first 11 months of 2006. Motorcycle sales were down 15.7% while vehicle sales plunged 42.6%.

Some market watchers said the recent decline in interest rates and aggressive promotions from dealers have helped lure back customers to the showroom.

Separately, Johnny Darmawan, president director of PT Toyota Astra Motor, Astra's unit that distributes Toyota cars, said he expects the country's vehicle sales to start recovering by the end of the first quarter.
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