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 cons
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.
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