Automotive - Car sales still sluggish in July Despite GIIAS 2024

Automotive - Car sales still sluggish in July Despite GIIAS 2024 The Association of Indonesian Automotive Industries (Gaikindo) noted that car sales in the domestic market would still experience a decline in July 2024. Based on data obtained by Kompas.com, in that period the total number of new cars distributed from factories to dealers, aka wholesalers, reached 74,160 units. This number decreased by 7.9% compared to the same period the previous year. Meanwhile, retail sales were recorded at 75,609 units, down slightly by one percent from last July 2023, which managed to print 76,358 units. With this, the accumulated annual car sales from January to July 2024 will still be minus 17.5% on the wholesale side and minus 12.2% for retail sales. "Hopefully in the remaining four months the shortage can be reduced," said Gaikindo Chairman Jongkie Sugiarto. Even so, if we look at monthly sales, the July 2024 period still managed to continue the positive trend since the second quarter of 2024 with an increase level of 4%. Comment : In all, July 2024 car sales remain within our ‘24F for 4W sales. Our conservative outlook for car sales this year is likely to be supported by continuing promotions from dealers, several upcoming events, and mainly will be supported by softer high-interest-rate environment expectations. Maintain our overweight stance for the auto sector.