Indonesia, world’s third largest two wheeler market after China and
India has seen steep fall in May month two wheeler sales. Total two
wheeler sales stood at 6,11,251 units in May 2012 down by 13.5% compared
to 7,06,293 units sold in the May 2011 as reported by Indonesian
motorcycle industry association (AISI). It is also down by 1% month on
month basis. There were total 6,17,508 units sold in the month of April
2012.
The reason of steep fall is because of the new down payment
requirement for auto purchases which come into effect on June 15. The
Indonesian government has taken the steps to limit the size of housing
and auto loans to prevent the loan bubbles in the economy. This has
severely affected the world’s two wheeler giant Honda and Yamaha which
commands more than 93% share of Indonesian two wheeler industry. Last
year Honda sold 4.28 million units while Yamaha sold 3.15 million units
in Indonesian two wheeler market.
The May month figure is alarming sign for Indonesian motorcycle
industry association (AISI) which has set target of 9 million units for
the year 2012. It seems that the sales will continue to be affected due
to new credit policy and will not revive until government will take
corrective actions. We may see total sales of around 7.5 -7.7 million
units for the entire year which is down by 4-6% compared to 8 million
units sold last year. This can affect Yamaha and Honda’s global sales
projection since Indonesia accounts lion’s share of their global two
wheeler sales.
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