Japanese automakers are sticking to their targets in Indonesia in defiance of the longest sales decline in six years, resorting to steep discounts to entice tight-spending consumers into showrooms that remain stubbornly empty.
Honda, Nissan and Mazda aim to sell more cars this year than last, though overall sales to distributors have fallen each month since September and are down 17 per cent in 2015.
"The decline is pretty drastic," said dealership salesman Jonatan, whose monthly average sales of Toyota Motor Corp cars was four versus eight last year. "We certainly have to work extra hard to sell cars these days."
Auto sales are a key indicator of consumption in Indonesia, where the economy is growing at its slowest since 2009, and where 7 per cent inflation is eroding purchasing power. Consumers are consequently reserving more money for primary needs, the central bank said last month.
In response, automotive industry association Gaikindo in June lowered its sales forecast for this year to a range of 1 million to 1.1 million vehicles from 1.2 million.
"We are struggling with the market slowdown," said PT Honda Prospect Motor director Jonfis Fandy.
The firm has been trying to boost sales since early in the year via promotions usually reserved for Indonesia’s annual automotive exhibition in August, to meet Honda’s target sales increase of 10 per cent.