Click here to close now.

Welcome!

Apache Authors: Elizabeth White, AppDynamics Blog, Roger Strukhoff, Liz McMillan, Carmen Gonzalez

News Feed Item

Frost & Sullivan Sees Indonesia's Automotive Industry to Grow 7.5% y-o-y Reaching 1.2 million units

~New regulations to be enforced will restrict the industry growth

JAKARTA, Indonesia, Feb. 18, 2013 /PRNewswire/ -- Frost & Sullivan predicts Indonesia automotive 2013 to grow 7.5% reaching 1.2 million units.

Mr. Vivek Vaidya, Vice President, Automotive & Transportation Practice - Asia Pacific at Frost & Sullivan said that the growth will be supported by the stable growth of the domestic economy, the continuous investment flow, infrastructure development, and increasing automotive production capacity. However, the growth will likely restricted by numbers of regulations awaiting to be enforced.

The demand for the passenger vehicles segment in Indonesia is likely to increase 7.6 per cent year-on-year to 840,000 units in 2013 from 780,500 units in 2012.

According to Mr. Vaidya, growth would be driven by segments such as MPVs, SUVs, and compact medium-small cars. More models reflecting low cost and green concepts are expected to be introduced after clear official announcement of the Low Cost Green Car (LCGC) regulations. These models are not only confined small cars, but also hybrid, and possibly CNG-fueled vehicles.

"The Indonesia's growth projection also depends heavily on the official announcement of the Low Emission Carbon (LEC) - LCGC Program. This program will be the game changer for the country's automotive industry. It also will boost Indonesia's vehicle sales and export rate as the LCGC car will fill the gap between motorcycle and vehicle market due its affordable price range. The LEC – LCGC Program will completely resposition Indonesia in global automotive industry map," he explained.

The enforcement of LEC – LCGC Program will create an opportunity to catch up with Thailand as it will open new markets and enable Indonesia to target other developing countries by exporting the LCGC cars.

On the other hand, commercial vehicles segment is expected to see a growth of 7.3% per cent year-on-year to 360,000 units in 2013 due to continued growth in the Indonesia's economy.

"The strong demand from domestic economy activities such as retail and manufacturing sector will drive the market for small-medium pickup/truck while growth in construction sector and infrastructure development might impact higher sales for heavy truck," Vaidya added.

The 4X2 segment will remain the biggest segment as further market development shall be done for models launched in 2012 where most of them are in category 4X2.

However, Mr. Vaidya warned that the rollback of fuel subsidies, increase in minimum wages and enforcement of minimum down payment are likely to have negative impact on sales of new vehicles in 2013.

2012 Vehicle Sales Review

Mr. Vaidya said that in 2012, Indonesia hit the historic 1 million units mark in vehicle sales. However, Indonesia's main rival, Thailand, also reached the 1 million units in vehicle sales and taking back its number one position as ASEAN's largest automotive market in 2012.

The Indonesia's TIV is likely to end at 1.116 million units, growing 24.9 per cent year-on-year. The growth was due to positive domestic economic environment, postponement of subsidized fuel restriction and price increase, increasing buying power from the middle class segment and the introduction of new car models.

"2012 vehicle sales growth is experienced by all segments of passenger vehicles, with the highest volumes coming from 4x2 segment," Mr. Vaidya said.

He added that the sedan segment recovered from 2011 decline as auto part supplies from Thailand and Japan recovered, boosting sales of low and medium sedan category such as Vios, City, Civic and Camry.

Meanwhile, the 4x2 and 4x4 segments saw high growth in 2012 due to new models introduced by automakers in the two segments since the end of 2011. The new models launched included the upgraded Toyota Avanza, Daihatsu Xenia, Honda CR-V and all new models such as Mitsubishi Outlander, Suzuki Ertiga, Nissan Evalia, Chevrolet Spin and Honda Brio.

Mr. Vaidya noted that major automakers in Indonesia are seeing growth in their 2012 sales as total market demand is healthy.

"Toyota remains as the market leader with market share per centage about 36%, followed by Daihatsu at about 15% and gained back its share in the market with the highest increase, thanks to the sales boost from the launched of upgraded Avanza/Xenia at the end of 2011. The sedan segment and hatchback model Yaris also contributed to Toyota's sales in 2012," Mr. Vaidya said.

Suzuki has a market share of 11.3 per cent in 2012 with a 1.1 per centage points growth due to the high sales of its new MPV model Ertiga.

Mr. Vaidya explained that Honda regained part of its market share at 6.2 per cent in 2012 due to the recovery of parts and CBU supply from Thailand and launch of the new CR-V and Brio.

Meanwhile, Mitsubishi saw its market share declined to 13.3 per cent in 2012 from 15 per cent in 2011 as switched its focus from the commercial vehicle segment to passenger cars segment. It also did not have any significant new product launched in 2012.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.  
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible.  This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.  

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us: Start the discussion
Join Us: Join our community
Subscribe: Newsletter on "the next big thing"
Register: Gain access to visionary innovation

Media Contacts:
Dewi Nuraini
Sr. Corporate Communications, Indonesia
Phone : +62 21 571 0838
Mobile : +62856 7800 792
BB Pin : 25886C1C
Email : [email protected]

http://www.facebook.com/pages/Frost-Sullivan/
http://www.linkedin.com/companies/4506
http://www.slideshare.net/FrostandSullivan
http://twitter.com/frost_sullivan
http://twitter.com/FROST_ID

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
2015 predictions circa 1970: houses anticipate our needs and adapt, city infrastructure is citizen and situation aware, office buildings identify and preprocess you. Today smart buildings have no such collective conscience, no shared set of fundamental services to identify, predict and synchronize around us. LiveSpace and M2Mi are changing that. LiveSpace Smart Environment devices deliver over the M2Mi IoT Platform real time presence, awareness and intent analytics as a service to local connected devices. In her session at @ThingsExpo, Sarah Cooper, VP Business of Development at M2Mi, will d...
Thanks to widespread Internet adoption and more than 10 billion connected devices around the world, companies became more excited than ever about the Internet of Things in 2014. Add in the hype around Google Glass and the Nest Thermostat, and nearly every business, including those from traditionally low-tech industries, wanted in. But despite the buzz, some very real business questions emerged – mainly, not if a device can be connected, or even when, but why? Why does connecting to the cloud create greater value for the user? Why do connected features improve the overall experience? And why do...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
Imagine a world where targeting, attribution, and analytics are just as intrinsic to the physical world as they currently are to display advertising. Advances in technologies and changes in consumer behavior have opened the door to a whole new category of personalized marketing experience based on direct interactions with products. The products themselves now have a voice. What will they say? Who will control it? And what does it take for brands to win in this new world? In his session at @ThingsExpo, Zack Bennett, Vice President of Customer Success at EVRYTHNG, will answer these questions a...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
SYS-CON Events announced today that BMC will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust IT industrialization – allowing customers to provide amazing user experiences with optimized IT per...
We’re entering a new era of computing technology that many are calling the Internet of Things (IoT). Machine to machine, machine to infrastructure, machine to environment, the Internet of Everything, the Internet of Intelligent Things, intelligent systems – call it what you want, but it’s happening, and its potential is huge. IoT is comprised of smart machines interacting and communicating with other machines, objects, environments and infrastructures. As a result, huge volumes of data are being generated, and that data is being processed into useful actions that can “command and control” thi...
Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
Collecting data in the field and configuring multitudes of unique devices is a time-consuming, labor-intensive process that can stretch IT resources. Horan & Bird [H&B], Australia’s fifth-largest Solar Panel Installer, wanted to automate sensor data collection and monitoring from its solar panels and integrate the data with its business and marketing systems. After data was collected and structured, two major areas needed to be addressed: improving developer workflows and extending access to a business application to multiple users (multi-tenancy). Docker, a container technology, was used to ...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In this session, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, will describe how to revolutionize your architecture and...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.