The National Economy Improves, Car Sales Throughout 2022 Reached 1.013 Million Units

The National Economy Improves, Car Sales Throughout 2022 Reached 1.013 Million Units (DONANG WAHYU|KATADATA)

2022 is a turning year for the Indonesian economy which was hit hard by the Covid-19 storm. The good economic growth also affected car sales.

Throughout 2022, sales of these four-wheeled vehicles will reach 1.013 million units. This figure grew 17.4 percent compared to the previous year’s period.

Based on data from the Association of Indonesian Automotive Industries (Gaikindo), the total retail sales jumped by 150,224 units compared to 863,358 units in the 2021 period.

On the wholesale side, car sales also grew. Referring to the same data, total wholesalers throughout 2022 will reach 1.048 million units. This performance grew 18.1 percent, considering that in 2021 the total wholesalers were only 887,202 units.

Furthermore, the upward trend in sales occurred monthly. In December 2022, total retail car sales were 103,891 units, growing 18.5 percent compared to the previous month.

Car sales which have reached around 1 million units reflect conditions towards normalcy. From 2013 to 2019, total domestic car sales reached an average of 1.1 million units per year.

The problem is, during the Covid-19 pandemic, total sales weakened and were cut by more than 50 percent in 2020. Even this weakened market condition prompted the government to flood the automotive sector with incentives in the form of a reduction in the Luxury Goods Sales Tax (PPnBM).

On the other hand, sales of battery electric vehicles (BEV) from automotive manufacturers BMW and MINI in 2022 also show an increase.

Sales have more than doubled on an annual basis (year on year/yoy) and reached 215,755 units, the BMW Group said on Tuesday (10/1).

“We are confident that we can continue this success in 2023, as we continue to see a very high number of orders for our pure electric vehicle models,” BMW AG board member Pieter Nota said in a statement.

However, total car sales last year fell 4.8 percent to just under 2.4 million units, despite record sales by the luxury brand Rolls-Royce. Sales of BMW’s core brand fell 5.1 percent to 2.1 million units.

Sales of BMW and MINI cars in the European market last year fell 7.5 percent to 877,369 units. At the same time, 791,985 cars were sold in China, BMW’s biggest single market.

The automaker said he was optimistic about this year’s performance. The increase in the electric vehicle business will continue, with a target to achieve a 15 percent share of BEVs in total sales by 2023, up from less than 9 percent last year.