Indonesia Market Summaries for Automotive 8 May 2013

April 4W retail sales were weaker than the wholesale

Despite a strong wholesale number (+6.4%mom), 4W retail sales in April remains muted at 95,487 units (-0.7%mom). The retail number is 6.5% lower than the wholesale, suggesting piled-up inventories at dealers’ level. Cumulatively until 4M13, retail sales figure came at 377,100 units (+12.6%yoy), 5.2% lower than the wholesale at 397,991 units (+17.8%yoy). As a comparison, 4M12 retail sales figure was only 0.9% lower than the wholesale. Aggressive expansions of assembling capacity by all principals contributed to this over-supply. Auto2000, the official dealer for Toyota, revealed that its stock level has exceeded the normal one month level. (Kontan)

April 2W sales only down 0.7%mom despite the closure of sharia loophole

Preliminary domestic 2W sales (wholesale) in April came at 660,509 units (-0.7%mom; +7.0%yoy). Compared to the previous month, April sales can be considered as strong, as industry players (i.e. Astra Honda Motor) previously hinted for a 5-10%mom drop in sales, amidst the full closure of sharia loophole starting April 1. Cumulatively up to 4M13, wholesale figures reached 2.6mn units (+2.8%yoy), on track with 35% realization to our 7.4mn units forecast (+5.1%yoy). (Bisnis Indonesia)

Toyota aims 800 units of monthly sales for All New Vios

Toyota Astra Motor officially launched the All New Vios yesterday, with a price range of Rp242.5-272.5mn/unit (four variants) – which are about Rp20mn more expensive than the previous variant. The company’s CEO, Johnny Darmawan, revealed that it aims to secure 300 units of monthly sales for the new variant, excluding the 500 units of monthly orders for the taxi version, Limo. Mr. Darmawan mentioned further that the total demand potential for taxi is around 20k units per year, but the company is only able to secure around 8-10k units amidst limited supply from Thailand. Since 2007, Vios has always been dominating the low-end sedan segment with a minimum of 41% market share. (Bisnis Indonesia)

Isuzu Astra Motor to increase tonnage capacity to boost sales

Isuzu Astra Motor, the exclusive dealer for Isuzu, plans to increase the tonnage capacity standard for some of its vehicles to adjust with the Indonesian geography and hence, boost sales. The standard tonnage capacity would be increased according to the standards in Japan, as well as the intake and ground clearance. As of April, Isuzu recorded 2,700 units of sales. To further support the sales, Isuzu Astra Motor would also continue to extend the dealers network by expanding to about 100 outlets from the current 93 outlets. (Bisnis Indonesia)