Indonesia car sales to halve due to coronavirus pandemic -ministry
08/04/2020 09:09
JAKARTA, April 8 (Reuters) - Total car sales by Indonesia's
automotive sector is expected to plunge 50% this year as
domestic and export demand shrinks due to the coronavirus
pandemic, the country's industry ministry said on Wednesday,
citing industry association Gaikindo.
Last year, a total of 1.03 million cars were sold in the
country, Southeast Asia's largest economy, while more than
843,000 units were exported in the form of completely
knocked-down or completely built-up units, data from Gaikindo
shows.
The industry ministry said in a statement that it has put
forward Gaikindo's request for tax breaks to the finance
ministry to help automakers weather the impact of the virus,
which has infected 2,738 people in Indonesia and killed 221.
Globally, the virus has infected around 1.4 million and
killed over 81,000, upending lives, businesses and disrupting
supply chains as governments impose lockdowns to contain the
spread. Travel curbs have hit demand across several sectors,
including autos, as people stay at home.
For Indonesia, the auto sector is an important indicator of
economic health as domestic car sales are often used to gauge
private consumption. The sector contributes about 4% to the GDP
excluding oil and gas, according to the industry ministry.
"Disruption in the automotive industry will affect the
national economy as the industry has a significant contribution
to GDP," Putu Juli Ardika, a director at the industry ministry,
said in a statement.
Domestic car sales IDCARY=ECI in January and February fell
2.4% on-year to 159,997, while exports fell 21.5% to 103,765.
Gaikindo had told the industry ministry it was facing
problems procuring components from countries under lockdown,
while some of its members have stopped production lines to
protect workers from COVID-19, the respiratory disease caused by
the novel coronavirus.
Indonesia's car market is dominated by Japanese brands, with
Toyota 7203.T and Daihatsu 6023.T leading sales.
(Reporting by Bernadette Christina Munthe and Gayatri Suroyo;
Editing by Himani Sarkar)
((gayatri.suroyo@thomsonreuters.com; +622129927609; Reuters
Messaging: gayatri.suroyo.thomsonreuters.com@reuters.net))