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World’s Automakers Rush into Indonesia

2012-02-29

The Wall Street Journal reported the world’s leading automakers actively invest in Indonesia, taking it as the next target market. The Japanese automakers have controlled the Indonesian auto market for decades occupying 90% of the market size; for example, Toyota Motor Corp. alone has occupied 60% of the market. LMC Consulting indicated that the light vehicles sales in Indonesia grew by 17% in 2011, close to the record high of 900 thousand units. With the growth of the middle class, the market anticipates that the Indonesian auto sales in the next year will amount to one million units. As the fourth most populous country in the world, Indonesia has a low auto ownership rate and its economic growth still depends on the domestic demand. Seen as the last auto market with large space for growth in the world, Indonesia is expected to achieve a result of 3 million units auto sales per year in the future 10 years, drawing in world-famous automakers to invest in the market.