Covid-19 pandemic inflicted a significant blow to the automotive sector. Vehicle sales in April 2020 fell by 90.6% compared to the same month in the previous year due to weakening purchasing power and lack of demand.

The Association of Indonesian for Automotive Industries (GAIKINDO) noted that car sales in April 2020 declined 90.6% to only 7,871 units compared to the same month in the previous year, which reached 84,056 units. National car sales in April were even lower than the last month, which touched 76,811 units.

Chairman I GAIKINDO Jongkie Sugiarto told, Friday (5/15) said the decline in sales occurred because of the Covid-19 pandemic and large-scale social restrictions from the local and national government to prevent the spread of Coronavirus (PSBB).

As is known, during the PSBB period, several factories and community activities outside home stopped temporarily to prevent transmission of the Coronavirus. Several manufacturers known to stop operating temporarily are PT Honda Prospect Motor (HPM) and PT Suzuki Indomobil Motor. However, Jongkie explained the actual stock of vehicles was still sufficient to meet domestic and export demand. However, during the pandemic, the demand for vehicles dropped significantly.  Under these conditions, he estimates car sales in May 2020 will be lower than April. In fact, in natural situations, vehicle sales ahead of Eid usually rise following the trend of increasing demand compared to the regular month.

In addition to the weakening purchasing power factor, the cause is a government policy that prohibits people during Eid (Lebaran) for not going back to hometown. However, he was reluctant to predict car sales this month. Astra Market Share was in line with the drop in national car sales. As a result, several vehicle brands under the Astra International Group also recorded a decline in sales.

Toyota, as the brand with the largest market share, in April only sold 2,093 vehicles. This figure dropped dramatically compared to the previous month, which was still around 26,000 units. Likewise, Daihatsu only sold 1,330 units. In fact, during the last month, Daihatsu sold about 18,000 units. Even though sales of some of its brands have fallen, in total Astra Group still survives with the acquisition of a 55% market share. ***,  15/05/2020