Car sales have plummeted since the coronavirus outbreak struck. Automotive industry players are preparing to reduce production. PT Honda Prospect Motor (HPM) Sales Director, Yusak Billy, said that the company continues to adjust production levels by following market demand.
Yusak could not yet mention the planned production decline of HPM. He said HPM management was still monitoring conditions that could change at any time. According to Yusak, HPM also prepared various scenarios, including temporary stopping production if needed.
According to Yusak, the company’s strategy is to continue to maintain stock level balance while continuing to maintain communication with consumers.
The Association of Indonesian Automotive Industries (Gaikindo) recorded car sales in January of 80,424 units and February 79,573 units. Sales volume was lower than the same period last year, namely 82,155 units and 81,809 units.
PT Toyota Motor Manufacturing Indonesia (TMMIN) Director of Administration, Corporations and External Relations, Bob Azzam, said the production cuts were carried out following market conditions. Since the government imposed restrictions on social interaction, said Bob, TMMIN has asked 75% of employees to work from home.
From the production side, Bob said that he had limited the number of workers by rotating work. Until now, Bob said TMMIN could still export several types of vehicles. General Manager of Sales of PT Isuzu Astra Motor Indonesia, Andi Dwizatmoko, said that the January-February sales declined 4.1 per cent compared to the same period last year. This decrease, he said, occurred due to the spread of COVID-19 which had been declared a global pandemic by the World Health Organization (WHO).
Andi hopes that the spread of COVID-19 will decrease by the middle of this year. However, he said, of course, it will take time to improve economic conditions, so that the automotive industry is indeed recovering. To reduce the impact, Andi said, Isuzu Indonesia is working on several programs to facilitate consumers.
Isuzu Indonesia relies on Isuzu Traga and Isuzu Elf to support logistics operations to the regions. Besides, Isuzu plans to launch a new product that will be released at the Gaikindo Indonesia International Auto Show (GIIAS) momentum.
Andi admitted that until now, the company is still producing generally because there are already several projects that must be fulfilled immediately.
Deputy Marketing Director of PT Hyundai Mobil Indonesia, Hendrik Wiradjaja, said the production of the Hyundai H-1 at the assembly plant in Bekasi, West Java, was still ongoing. But the COVID-19 pandemic forced companies to limit the number of workers.
As for the decline in sales, it was said by Hendrik, due to delays in delivery of cars in complete built-up (CBU) from Korea.
“Because of the appeal of physical distancing, showroom and workshop activities stopped. Only those who are in an emergency nature are still serving,” Hendrik said. Hendrik could not be sure when the automotive industry recovered, including the matter of plans to launch new products. With the current conditions, Hendrik said, all company plans must be discussed and scheduled from the start. ***