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Cheap Car Duet Agya-Ayla Predicted "Explode"

Cheap Car Duet Agya-Ayla Predicted "Explode"

 Inexpensive and environmentally friendly cars (LCGC) from Astra Daihatsu Motor (ADM) and Toyota Astra, Agya and Ayla, predicted to explode when marketed starting next year. However, the Indonesian market will still be dominated by the 7-passenger MPV, although the trend of demand city car (segment A) and (B segment) up.

The estimates presented Jessada Thongpak, senior automotive analyst at IHS Automotive research institute based in Bangkok, when a speaker at "The 7th Indonesia International Automotive Conference" in Kemayoran, Central Jakarta, Monday (24/09/2012).


Lowest stillExplained, the car population in Indonesia is the lowest compared to other ASEAN countries. This year alone, the density or the ratio between the number of cars and the population in Indonesia is only 45 people per 1,000 population, or 1 car for 22 people. He added that the next two years (2014), the supply of compact imported CBU from Thailand are expected to gradually decline.


"Because LCGC domestic production will increase. Fact, the project will boost the LCGC's total passenger car market to 200,000 units from 2014," beber Jessada.


Until now the total car production in Indonesia is still dominated by the B segment, including a small MPV, which is up 80 percent. "From 2015 onwards, the volume of passenger car production will exceed domestic sales because most will be exported to the outside," he continued.


Motorcycles to carsMasaki Honda, another analyst from Frost and Sullivan, added that in 2015 the average income per capita (GDP) in Indonesia is predicted to reach 5465 U.S. dollars, up from the current 3600 U.S. dollars. Even in 2025, the GDP of Indonesia's population could penetrate 17 000 U.S. dollars with a population of 270.53 million.


"This year, Indonesia's automotive market will shift from motorcycles to passenger cars which forced factories should increase its production capacity," beber Honda.


Added, the first car to consumers in Indonesia will still be dominated by the favorite models, such as the MPV-7 passengers and other compact cars. In addition, the luxury cars will be more affordable longer because the purchasing power continues to increase. "Meanwhile, consumers who buy second and third cars will satisfy themselves with smaller cars," said Honda.



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