Welcome!

Apache Authors: Pat Romanski, Liz McMillan, Elizabeth White, Christopher Harrold, Janakiram MSV

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

SOURCE Frost & Sullivan

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
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics gr...