Indonesia expects auto sales to rebound in second half

The Indonesian Automotive Industries Association (Gaikindo) expressed a hope Wednesday that auto sales will pick up pace in the second half of this year after continued slumps in monthly sales until May.

Auto sales in the second half are expected to exceed 150,000 units to meet full year target of 350,000 units, said Gaikindo Chairman Bambang Trisulo.

The association has earlier revised downward the annual target from 400,000 units due to the sluggish market since the government imposed fuel price hike last October, followed by central bank's move to raise benchmark interest rate.

The renewed target is much lower than sales in 2003 and 2004, which stood at 354,208 units and 483,283, respectively.

"Sales in the first half are estimated to reach only 150,000 units, so we hope to bolster up the market in the second half," the Chairman told reporters here.

Motor vehicle sales hit all-time high last year at 530,000 units but have since declined as people's purchase power was weakened by fuel price rises and soaring bank interest.

Source: Xinhua