Lower fuel prices will help Indonesia's car sales in 2016: Astra
JAKARTA - PT Astra International, the biggest car distributor in the country, is pinning its hopes on lower fuel prices and economic recovery to help automotive sales in the second half of 2016. Car sales contracted 6 per cent in the first two months of 2
Total automobile sales in January and February was 173,000 units, 10,000 units fewer than in the same period last year. The economic slowdown has reduced people's purchasing power, but sales are expected to recover in the second half.
"Economic growth was 4.7 per cent last year. This year it may grow to more than 5 per cent. We hope for higher demand in the second half," Astra International director Gunawan Geniusahadja said in Jakarta on Monday.
Reduced fuel prices, Gunawan added, was one of two aspects that determine car sales along with economic recovery. "If operational costs are lower, then transportation costs will be lower too, which can increase demand," He said.
Despite lower sales, Astra has kept its market share in the automotive industry. "We still have a 51 per cent market share," he said.
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