Indonesia Autos Report Q2 2015

Business Monitor International
February 25, 2015
68 Pages - SKU: BMI5475677
Countries covered: Indonesia

Indonesia Autos Report Q2 2015

Indonesian auto sales have entered into a tailspin over the past few months, with their decline exacerbatedby the recent hike in fuel prices in November 2014. While we remain optimistic on 2015 and forecast arecovery for this year, we are tempering our growth forecasts as we see demand conditions remaining softin the coming months. We forecast vehicle sales to grow 4.3% in 2015 versus 9.6% previously.

The two salient factors, which have eroded consumers' purchasing power and crimped private consumption,are high inflation and elevated interest rates. Our Country Risk team expects this to persist for much of 2015and this will continue to take a toll on passenger car demand. However, as the market gradually absorbs therise in fuel prices, we see consumer demand picking up in the latter half of the year; we forecast car sales torise by 4.0% in 2015.



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