Automotive - 4W sales continue drop in April 2024

Automotive - 4W sales continue drop in April 2024 Car sales in the domestic market plunged at the beginning of the second quarter of 2024. Based on data from the Association of Indonesian Automotive Industries (Gaikindo), the total distribution of new cars from factories to dealers or wholesalers during the period in question only reached 48,637 units, down 34.9% monthly. Meanwhile, on the retail sales side, during the same period, it fell 28.4% compared to the achievement in March 2024, from 82,088 units to 58,779 units. On an annual basis, or year-on-year (yoy), wholesale sales in April 2024 also decreased by 17.5% from the previous 58,981 units. Likewise, retail sales slowed to 14.2 %, or 68,531 units. (Source : Kontan) Comment : We might see 4W sales to continue weak in the following month. Yet, the next GIIAS should overall help the declining demand to softer. We view concern on the potential loan yield repricing and strengthening DXY will continue to jeoperdize sales volume. Key catalyst lies on: (1) continuing discount (2) lengthened credit tenor (3) better market optimism on uncertainty, especially the expectation on the postponed of higher interest rate.