PT. Chailease Finance Indonesia

PT. Chailease Finance Indonesia

Car Exports Decreased in August 2020, Component Distribution Increased Smoothly

JAKARTA— The decline in demand for cars did not only occur in the domestic market but also occurred in exports.

Export performance recorded a significant decline compared to 2019, one of which was due to the Covid-19 outbreak. From data from the Association of Indonesian Automotive Industries (GAIKINDO), the export of completely build up (CBU) national cars or intact vehicles was only 206,685 units for the period January - November 2020.

This figure is down 32.6 percent from the same period the previous year of 306,901 units. Several car manufacturers that export from Indonesia include Toyota, Daihatsu, Mitsubishi, Suzuki, Isuzu, Wuling, and Hyndai.

The largest export destination country is the Philippines. Throughout January - November 2020, Toyota has successfully booked export sales for CBU units and 78,912 units, down 29 percent from 112,538 units in the same period the previous year.

Meanwhile, Suzuki also shipped cars in completely knocked down (CKD) form, down 3.7 percent to 35,256 units in January - November 2020 from 36,631 January - November 2019. Director of Administration, Corporation and External Relations PT Toyota Motor Manufacturing Indonesia Bob Azam said that CBU export sales projections could recover in the range of 70 percent from last year's achievement.

"The projection for Toyota-branded CBU exports throughout 2020 will only recover in the range of 70 percent compared to 2019's achievement of 208,500 units," he said as quoted by CNBC Indonesia, Friday, December 18, 2020.

Toyota's export performance began to improve towards the end of the year. In November there was an increase of 9 percent from November 2019.

Most of the exports were aimed at potential Middle Eastern countries.

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