Indonesia car sales to halve due to coronavirus pandemic

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.

File photo used for representational purpose only (AFP)
File photo used for representational purpose only

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.

Also check these Cars

Find more Cars
Mahindra Xuv300 Turbo Sport (HT Auto photo)
₹10.35 - 12.9 Lakhs**Ex-showroom price
Add to compare
Check latest offers
Mercedes-benz Amg E53 Cabriolet (HT Auto photo)
2999 cc | Petrol | Automatic
₹1.3 Cr**Ex-showroom price
Add to compare
Maruti Suzuki Ytb (HT Auto photo)
UPCOMING
₹7 - 11 Lakhs* *Expected Price
View Details
Maserati Mc20 (HT Auto photo)
₹3.69 Cr**Ex-showroom price
Add to compare
Check latest offers
Maruti Suzuki Baleno (HT Auto photo)
1197 cc | Petrol | Manual
₹6.5 - 10 Lakhs**Ex-showroom price
Add to compare
Check latest offers
Maruti Suzuki S-presso (HT Auto photo)
₹4.25 - 5.99 Lakhs**Ex-showroom price
Add to compare
Check latest offers

Also Read : German car sales plummet as coronavirus restrictions bite

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.

Also Read : UK new car sales plunge 40% in March as coronavirus crisis hits

Domestic car sales 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 and Daihatsu leading sales.

First Published Date: 08 Apr 2020, 14:15 PM IST
Recommended for you
View all
NEXT ARTICLE BEGINS
Shopping Bag Shop Now
55% OFF
SOFTSPUN Microfiber Cloth - 4 pcs - 40x40 cms - 340 GSM Grey- Thick Lint & Streak-Free Multipurpose Cloths - Automotive Microfibre Towels for Car Bike Cleaning Polishing Washing & Detailing…
Rs. 269 Rs. 604
19% OFF
Involve Your Senses One Musk Organic Car Perfume, Involve Your Senses Strong Fiber Air Freshener to Freshen'up Your Car - IONE01-40 g,Car Accessories interior car perfumes and fresheners
Rs. 324 Rs. 399
73% OFF
pTron Bullet Pro 36W PD Quick Charger, 3 Port Fast Car Charger Adapter - Compatible with All Smartphones & Tablets (Black)
Rs. 349 Rs. 1,299
14% OFF
Jopasu Car Duster
Rs. 749 Rs. 869

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city