What Down Payment Restriction? Sales Up 31% at Toyota Astra
Toyota Astra Motor, the sole distributor of Japanese Toyota vehicles in Indonesia, sold 238,969 units through the first seven months of this year, said the company’s president director, Johnny Darmawan.
Toyota Astra, which is 51 percent owned by Indonesia’s largest listed company, Astra International, saw a 30.8percent year-on-year increase in vehicle sales through the end of July.
Johnny said Toyota Astra sold 221,095 units of passenger vehicles, accounting for 92.67 percent of total auto sales in the period, while commercial vehicle sales stood at 17,488 units, contributing 7.32 percent of the total during the first seven months.
Multi-purpose vehicles like the Toyota Avanza and Toyota Kijang were the company’s most popular products, accounting for 67.4 percent of the total sales, or 160,974 units. Toyota’s compact cars, such as the Yaris and Prius, booked the largest year-on-year increase, at 48 percent.
“The implementation of the new down payment regulation for auto credit has had little impact on Toyota sales, especially in the segment of commercial vehicles,” Johnny said.
The government on June 15 began enforcing a minimum down payment of 25 percent for consumers looking to buy vehicles with credit. Along with a similar requirement for mortgages, the policies were aimed at curbing excessive lending.
Toyota’s sales of commercial vehicles climbed 24.72 percent during the first seven months.
“The strong growth in commercial vehicles sales is a reflection of growth in commodities distribution and logistics, an indicator of economic growth,” Johnny said.
He added, however, that it was too early to assess the impact of the new down payment regulation on the automotive sector. “The impact can be calculated after three months,” he said.
Astra International booked a net income of Rp 9.7 trillion ($1 billion) in the first half, with its automotive distribution making a 25 percent contribution to the total.
Aside from Toyota Astra Motor , Astra International also sells Daihatsu, Isuzu, UD trucks and Peugeot cars, together commanding 56 percent of the market in the first half of the year. Astra also sells Honda motorcycles, controlling a 57 percent share of that market.
Astra’s shares fell 1.4 percent to Rp 7,000 on the Indonesia Stock Exchange on Thursday.