Mazda Upbeat About Indonesian Growth Despite New Financing Rule
Mazda Motor Indonesia remains “optimistic” about a target to grow car sales 33 percent this year, despite a new down payment rule set to take effect next month.
“Despite Gaikindo predicting there will be a decline in sales this year, Mazda is optimistic the sales target of 12,000 units is achievable,” said Astrid Ariani Wijana, the marketing manager of MMI, on the sidelines of the Mazda CX-5’s launch in Jakarta on Thursday.
Last year, Mazda sold 8,996 cars, a meager 1 percent of Indonesia’s 894,180 domestic car sales.
Gaikindo is the Association of Indonesian Automotive Manufacturers. Its chairman, Sudirman Maman Rusdi, predicted domestic car sales may only reach 700,000 units in 2012, a steep cut from the 1 million units it had previously forecast.
Despite Indonesia’s rising middle class, and a low inflation and interest rate environment, Gaikindo says it expects the new down payment rule will cause some customers to delay car purchase plans.
The Bank Indonesia and Finance Ministry regulation will require buyers to pay a 25 percent to 30 percent down payment, starting on June 15, on car loans. Currently, there is no minimum down payment requirement, but financiers typically demand up to 15 percent of the vehicle’s cost.
Astrid admitted that the new rule would affect sales, as 70 percent of the Mazda 2 — its hatchback sedan and biggest sales contributor — are sold with financing.
MMI, a fully owned subsidiary of Japanese automaker Mazda Motor Corporation, on Thursday introduced its new Mazda CX-5, a compact crossover SUV, to the Indonesian market. Indonesia is the second-largest market for Mazda in Southeast Asia.
MMI expects the CX-5 to capture 3 percent to 5 percent of SUV sales nationwide, Astrid added.
Just about a month before the implementation of the new down payment rule, car distributors in Indonesia will gather at Otobursa Tumplek Blek 2012, a second annual car exhibition held today and Sunday by Otomotif magazine.
Automotive industry representatives will have special offers for event attendees, including financing deals and discounts on auto accessories.