Automotive - Auto manufacturers continue to strengthen exp sales

Automotive - Auto manufacturers continue to strengthen exp sales A number of automotive manufacturers in Indonesia will continue to promote exports of domestically made cars until the end of 2023. Referring to data from the Association of Indonesian Automotive Industries (Gaikindo), export sales of completely built up (CBU) cars were recorded at 468,595 units in January-November 2023. This figure grew 10.62% year on year (YoY) compared to the same period last year, namely 423,606 units. According to Toyota Motor Manufacturing Indonesia (TMMIN), amidst global economic conditions which are still shrouded in uncertainty, the export performance of the automotive industry is one of the strong pillars that can support positive trade balance performance for Indonesia. Raize, Veloz and Fortuner are the three largest export contributor models from Toyota Indonesia. (Source: Kontan). Comment: We expect export sales will continue amid continuing potential strong solid sales volume in domestic market. Despite we expect domestic market remain remains as the major contribution to ‘24F overall performance, we also like stronger export market which should be translated as continuing strong demand for Toyota solid brand equity.