The Automotive Focus Group (AFG) reports that Indonesia is looking to knock Thailand from its perch as the top vehicle sales country for SE Asia.
Some sources in Australia are suggesting Indonesia could pass Thailand to become the largest vehicle market, by unit sales, in Southeast Asia.
When looking at vehicle producers, however, Thailand is in the world top 10, while Indonesia is lagging seven years behind Thailand.
According to official figures, Indonesia and Thailand produced more than a million vehicles for their domestic markets for the first time last year but the Thais are still far ahead in quality, quantity and value to the national economy.
The Indonesian vehicle sector had a break-out 2012, but Thailand domestic sales grew to 1.44 million units, propelled by the government’s rebate to first car buyers. Including exports, the Thailand gross figures for production were 2.45 million vehicles.
Indonesia’s figures were 1.2 million vehicles in the domestic market, but only 250,000 for export, well behind Thailand’s numbers, though up 40 percent mainly through the mini-MPV built in Indonesia.
GM is returning to Indonesian manufacturing, after an eight year break, with a Chevrolet mini-MPV, manufactured in Brazil but designed, the company says, for Indonesian conditions.
The Indonesian government is trying to capitalize on the potential through the Low Cost Green Cars program, which would remove or partly rebate the luxury tax applying to all new private vehicles.
The scheme was announced last year with Toyota (which has 36 percent of the domestic market), Daihatsu, Suzuki and Honda all immediately committing to the plan, and now joined by Nissan (using the Datsun nameplate for low cost vehicles). However, the government has not set the guidelines for the manufacturers, but there is much potential when they do, looking at the population of Indonesia.
