Automotive - Jan-Oct23 car sales dropped 1.8%

Automotive - Jan-Oct23 car sales dropped 1.8% Domestic car sales experienced a decline of 1.8% yoy. Based on data from the Association of Indonesian Automotive Industries (Gaikindo), wholesale car sales reached 836,049 units during January-October 2023, down 1.8% yoy compared to the same period last year of 851,411 units. Even if we look at monthly basis, retail sales reached 79,451 units in October 2023, or down 1.9% compared to September 2023 of 80,974 units. (Source: Bisnis Indonesia). Comment: 10M23 car sales came in at our expectation. Assuming 11M23 and 12M23 car sales will be flat, than 12M23 4W sales will arrives above our ‘23F for car sales of around 960K units. We believe the declining car sales in Oct23 its not highly correlated with higher auto loan yield, as the higher interest has been offered in the last several months. Key will be continuing promotion, discount, low down payment and credit tenor.