Toyota Astra Motor Introduces New Hatchback
News: Japanese automaker Toyota Motor's Indonesian distributor Toyota Astra Motor has launched a new hatchback model in the country. The Toyota Etios hatchback, known as the Etios Valco for its Indonesian launch, will target younger middle-income families that spend around IDR10mn (US$970) a month. It will be assembled in Karawang, West Java, by Toyota Motor Manufacturing Indonesia, which is 95% owned by Toyota Motor and 5% owned by Astra International.
BMI View: BMI remains bullish on growth in Indonesia's auto sector. Despite the introduction of new regulations regarding minimum down payments on vehicle purchases in June 2012 and a further tightening of legislation in September 2012 to include shari'a lending as well, Indonesia's total vehicle sales for 2012 came in at 1.116mn units, a record high. Given that auto sales picked up in September 2012, the market has somewhat digested this new legislation for vehicle sales and we expect 2013 to be another record year for total industry sales. BMI currently expects vehicle sales to grow by an annual average of 8.9% over the 2013-2017 period.