Review of Indonesia’s Automotive Industry

Prepared and presented by Daniel Doni Sundjojo

Indonesia’s Economic Overview

2010 2011 2012 2010 2011 2012 2013GDP Growth (%) 5.50 5.50 5.90 5.80 6.30 6.65 7.05Inflation (%) 6.00 5.60 5.00 5.30 5.90 6.00 6.00Exchange Rate (%) 10,000 10,000 10,000 9,200 9,500 9,500 9,500 BI Rate (%) 7.50 7.10 6.50 6.50 7.50 7.50 7.50

GOVERNMENTMID YEAR 2010

2011 Economic overview 2011 Economic overview Good ConditionGood Conditionbut with several issue consideration

( Progressive Tax, Fuel Subsidy limitation )

Indonesia’s Automotive Market Overview

Indonesia’s Automotive Market still strongGaikindo : Indonesia's automotive industry is booming and well on track

to achieve a recovery from its collapse of 2006.

National Market Share – The top 7 of Automaker

Up to September 2010, Indonesia’s automotive market sharestill dominated by Toyota (40,6%),

followed by Daihatsu (15,6%), and Mitsubishi (12.7 %). The 7 magnificant conquered 93.2% of National Market Share

National Market Share ( Top 7 of Automaker)

0,0%5,0%

10,0%15,0%20,0%25,0%30,0%35,0%40,0%45,0%

2008 2009 up toSeptember

2010

Year

Perc

enta

ge o

f Nat

iona

l M

arke

t Sha

re

Toyota Daihatsu Mitsubishi SuzukiHonda NissanIsuzu

100%100%100%Market Total

6,80%6,10%18,80%Others

93,2%93,3%81,2%Total top 7

2,8%3,3%3,9%Isuzu

5,0%4,6%5,7%Nissan

7,9%7,8%8,8%Honda

8,6%9,4%12.6%Suzuki

12,7%12,0%13,6%Mitsubishi

15,6%15,7%12,8%Daihatsu

40,6%40,5%36,4%Toyota

up to September 201020092008

Market ShareAuto Maker

Unit Sales – The top 7 of Automaker

Up to September 2010, Toyota, with 153225 of unit sales, was top on the table of Indonesia’s automotive unit sales,leave all of its competitor behind with significant margin

National Unit Sales(Top 7 of Automaker)

050000

100000150000200000250000

2008 2009 up toSeptember2010

Year

Uni

t Sal

es

Toyota Daihatsu Mitsubishi SuzukiHonda NissanIsuzu

377605456958559958Market Total

264833075834973Others

351122426200524985Total top 7

104951493222056Isuzu

187472110731832Nissan

297343572249307Honda

323384291470295Suzuki

478415491576165Mitsubishi

587427173671397Daihatsu

153225184874203933Toyota

up to September201020092008

Unit Sales Auto Maker

Number of Outlet – The top 7 of Automaker

Up to September 2010, Suzuki was named as the biggest number of outlet with 202 outlets,followed by Toyota (196 outlets) and

Daihatsu (168 outlets)

National Number of Outlet(Top 7 of Automaker)

0

50

100

150

200

250

2008 2009 up toSeptember

2010

Year

Num

ber o

f Sal

es

Out

let Suzuki

Toyota Daihatsu Mitsubishi Honda Isuzu Nissan

474740Nissan

787171Isuzu

858683Honda

148148148Mitsubishi

168168153Daihatsu

196194191Toyota

202214214Suzuki

up to September 201020092008

Number of Outlet Auto Maker

Productivity of Outlet– The top 7 of Automaker

Up to September 2010, Toyota was top notch in term sales productivity of outletwith 781.8, followed by Nissan with 398.9 and Honda with 349.8

134,6210,3311Isuzu

160,1200,5328Suzuki

323,3371515Mitsubishi

349,7427467Daihatsu

349,8415,4594Honda

398,9449,1796Nissan

781,89531068Toyota

up to September 201020092008

Sales Productivity of Outlet Auto Maker Sales Productivity of Outlet(Top 7 of Automaker)

0200400600800

10001200

2008 2009 up toSeptember

2010

Year

Prod

uctiv

ity o

f Sal

esO

utle

t Toyota

Nissan

Honda

Daihatsu

Mitsubishi

Suzuki

Isuzu

Automotive Issue vs Unit Sales

• Based on UU No.28/’09progressive tax 10%* depend on City Gov policy

• DKI Progressive Tax1st car : 1.5%2nd car : 1.75%3rd car : 2.5%4th car : 4.0%

Despite of many issue such as automotive tax policy, restless Indonesia’s automotive market still growth

that shows no signs of slowing down.

Conclusion•Indonesia’s Automotive Market still strong, despite of many issues arround automotive industry. Many condition such as easily obtainable credit, low interest rates, combine with a strong increase in consumer lending by banks and an abundance of new, low-priced models assembled locally, have significant impact to make automotive business still attracting and interesting.

•My prediction for the next couple year :• Japanese automaker, lead by Toyota and Daihatsu still strong• USA and Europe brand will growth but with the right

segmentation • Customer tend to looking for middle class car with range IDR

150-250 million especially in MPV Class• SUV will growth at least 15% annually• Truck market still on despite slowly demand in the market, but

still dominated by Mitsubishi • Heavy Truck will growth with the slowly pace.• We can see The Rise of Luxury Car