From Government of Indonesia

Faster Recovery Predicted for Car Market

The automotive industry predicted a sharp increase in car sales starting this month with improved macroeconomic conditions and purchasing power.

The Association of Motor Vehicle Manufacturers (Gaikindo) said car sales are forecast to reach 30,000 units in March, bringing total sales to 80,598 units in the first quarter of the year, up 1.6% from the same period last year.

A decline in sales to 23,810 units in February from 26,788 units in the previous month was caused by floods in Jakarta, Gaikindo chairman Bambang Trisulo was quoted as saying by Antara. The car market is expected to fully recover in April.

Gaikindo data released on Thursday (15/3/07) showed that car distributor PT Astra International sold 12,490 new vehicles in February, down 17% from 15,106 units sold in January, Dow Jones Newswires reported.

Astra's February sales also fell 21% on year. It sold 15,872 units in February 2006.

The company did not give any reason for the decline in vehicle sales, but analysts attributed it to the massive floods in the capital and other cities that weakened consumer purchasing power.
Astra said its motorcycle sales in February dropped 1.8% to 150,979 units from 153,806 in January.

Domestic motorcycle sales in February rose 5.4% year-on-year to 348,723 from 342,773 in January, data from the Indonesian Motorcycle Industry Association (AISI) showed, according to XFN-Asia.
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