Automotive - Gaikindo is optimistic car sales will improve in Nov-Dec23

Automotive - Gaikindo is optimistic car sales will improve in Nov-Dec23 The Association of Indonesian Automotive Industries (Gaikindo) hopes that national car sales can return to positive growth in the remaining two months of 2023. Based on Gaikindo data, wholesale sales (factory to dealer) of national cars fell 1.8% yoy to 836,049 units in Jan-Oct23. On the other hand, retail sales (dealer to consumers) of national cars can still grow slightly 0.4% yoy to 825,691 units in Jan-Oct23. The trend of slowing car sales has been occurring since last September. At that time, national car wholesale sales also fell 0.4% yoy in Jan-Sept23. Fortunately, national car retail sales continued to grow 1.9% yoy in the same period. (Source: Kontan). Comment: We car sales will book higher figures mom in the remaining months of this year. As of 10M23 period, car sales came in above our expectation of ‘23F 4W sales at a run rate of 86.5%. Assuming 4W car sales will be flat in Nov23 and Dec23, total sales volume will arrive at 996,591 units or in line with KBVS and Gaikindo ‘23F expectation at 966,753 units and 1,000K units.