Indonesia in March reported domestic auto sales at 84,910 units, up 11pc from the prior year. Auto production in the same month has, however, dipped 8pc to 101,904 units from the preceding year, according to data released by Association of Indonesian Automotive Manufacturers (Gaikindo).
Passenger car sales in March reached 64,351 units, up 4pc from the previous year month. Passenger car production was down 13pc in the same month from 2020 levels, due to shortage of semiconductor chips.
Car sales have expanded on the back of luxury tax cut for small cars. Total domestic sales was up 72pc from the previous month. The government has offered tax cut to boost consumer spending and push the economy recovery.
In Q1, total production slipped 27pc to 255,312 units compared to the prior year period. Sales in Q1 was 21pc lower than the previous year quarter. Sales in Q1 stood at 187,021 units. Passenger car sales in Q1 was down 26pc to 135,500 units and production 23.62pc down to 198,940 units.
Gaikindo said that tax incentive would boost annual car sales in the current year as compared to 2020 levels, but also noted that sales would likely remain below 2019 levels as the country is still recovering from a recession and pandemic is still impacting businesses.