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A representative of the Association of Indonesian Automotive Industries said new vehicle sales in July would reach the nation’s highest monthly total ever, surpassing June’s record of 70,384 units, thanks to the stable economy and the upcoming Idul Fitri celebrations.

“The total retail sales for the month of July will be the highest total ever, surpassing 75,000 and maybe even reaching 80,000 units,” Rizwan Alamsjah, vice chairman of the association also known as Gaikindo, said on Sunday. Prior to June’s record, the previous monthly record total was set in March, at 65,555 units.

“The anticipation for the Lebaran holiday and, needless to say, the strengthening Indonesian economy” have spurred the phenomenon, Rizwan said.

He said this year’s Indonesia International Motor Show, which enjoyed a sales bonanza, illustrated rising demand for vehicles on the back of stronger consumer buying power.

The exhibition, which opened on July 23 and ended on Aug. 1, rang up Rp 2.4 trillion ($269 million) in sales, 41 percent more than last year.

Only Toyota has released July sales figures, and Rizwan said Gaikindo was still gathering data from other manufacturers.

Toyota, the leading car brand in Indonesia, sold 27,699 units in July, its highest monthly sales total ever, a 6.3 percent increase from June’s sales and around 55 percent higher than its 17,800 vehicles sold in July 2009.

Johnny Darmawan, president director of Toyota Astra Motor, also said Idul Fitri and improving economics conditions were responsible for the record sales. Indonesian Muslims usually return to their hometown or visit relatives during the holiday, driving vehicle purchases.

Lower interest rates have also fueled the market, Rizwan said. “The average lending rates for car purchases have fallen to around 6 percent so far this year, compared with an average of around 10 percent last year.”

Since August 2009, the central bank has left its key interest rate at 6.5 percent, the lowest level since its introduction in July 2005, encouraging domestic lenders to lower borrowing costs.

Indonesia’s record for vehicle sales was set in 2008, when 607,805 units were sold. Amid the crisis last year, sales total dropped to 486,061. According to analysts, the weakened global economy played a major part in the decrease.

Gaikindo said vehicle sales in Indonesia had jumped 76 percent to 370,206 units in the first half of 2010, driven by strong demand for minivans. Sales overtook Southeast Asian pace-setter Thailand for the first time, as sales in Thailand rose 54 percent to 356,692 units during the same period, according to a Nikkei survey released in July.