Purchasing Power Strengthens, Car Sales Increase

Automotive industry has almost never grown stagnant. Almost every year, new cars are launched to the market. In the blink of an eye, people start to consider changing their cars. Moreover, various prestigious auto shows like GIIAS spurs public’s interest even further, leading to an increase in car sales.

As a matter of fact,as quoted from Kompas.com, Indonesia secretly has many luxury car enthusiasts. In 2017, domestic luxury car market reached 2% of Indonesia’s total population.

BMW Group Indonesia’s record proved this phenomenon. Domestic sales rose by 15% from 2017. This means that Indonesians started to eye premium cars with more advanced technology.

“They probably have seen BMW cars overseas. Thus, purchasing power is still growing, especially in premium segment," BMW Group Indonesia Corporate Communications Vice President Jodie O’tania said, as quoted from Detik.com (July 19).

People, she continued, start to be more tech literate and want to follow European car trend. Furthermore, Jodie said that the country’s improving economy is also a contributing factor.

This data only covers luxury car market, not including mid-end car market that has also gained more enthusiasts. Therefore, it is not exaggerating to say that this means Indonesians’ purchasing power is still strong.

Overall, Gaikindo’s data shows that car sales in the country grew by 3.1% in Q1 2018 than in the same period last year.In 2017,the wholesales were 283,760 vehicles.

In line with new car sales, used car sales also increase, especially since the odd-even traffic policy took effect. People need alternative vehicles by buying cars with different license plates to their main cars.

Moreover, used cars now have competitive quality as long as customers buy them from trusted showrooms. In mobil88, a subsidiary of PT Serasi Autoraya (SERA) which is part of Astra, the quality of all its cars is guaranteed. The cars are also in prime condition, so they can be used directly without needing repair.

Thus, used cars are expected to be alternatives for people’s transportation need amid the improving economic condition. Moreover, private cars are still considered to be the most flexible and efficient means of transportation when punctuality is incredibly important.