Car sales in Indonesia declined by 96pc to 3,551 units in May from the year prior, according to the Association of Indonesian Automotive Industries (GAIKINDO). Additionally, sales halved in May from 7,868 units sold in April.
Major steel-consuming industries including auto sector witnessed a significant drop amid COVID-19 pandemic. Finished steel sales fell by 30-90pc between March to May. Auto sales volumes in April declined by 90pc and continued to drop further in May on weak demand for cars.
Indonesia produced 2,627 units in May, down 97.5pc from the prior year, according to the association. In January to May, auto manufacturers produced 352,571 cars, down by 33pc over the prior year period.
In May, auto exports decreased by 76pc to 6,500 units from the prior year. The Indonesian car market is dominated by Japanese carmakers. Toyota and Daihatsu usually leading sales, but Mitsubishi and Suzuki led in May.
After COVID-19 restrictions were eased and operations resumed sales have improved in the first half of June.
Flat steel demand
Indonesia’s automotive sector, a major driver of flat steel demand in the country saw a sharp drop in demand and thus, steelmakers stayed away from importing flat steel including HRC.
GAIKINDO anticipates domestic vehicle sales to reach 600,000 units in 2020 compared to 1.05mn units projected at the beginning of the year.