LiliAs a result, the traditional business model of car sales will be complemented by a range of diverse, on-demand mobility solutions, especially in dense urban environments that proactively discourage private-car use. Overall global car sales will continue to grow, but the annual growth rate is expected to drop from the 3.6 percent over the last five years to around 2 percent by 2030. This drop will be largely driven by macroeconomic factors and the rise of new mobility services such as car sharing and e-hailing. We support suppliers with strategic problem-solving and innovation, development, and cost-cutting programs.
- AIAG Supply Chain Management initiatives provide guidelines, training and educational opportunities to understand and manage the complexity and scope of supply chain issues.
- Diverging markets will open opportunities for new players, which will initially focus on a few selected steps along the value chain and target only specific, economically attractive market segments—and then expand from there.
- Indonesia is facing a severe energy issue, particularly in fuel oil for the transportation sector.
- The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles.
- This is a true missed opportunity in terms of export performance because about 80 percent of the world’s drivers use a sedan vehicle.
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The government set several terms and conditions for the manufacturing of LCGCs. For example, fuel consumption is required to be set at least 20 kilometers per liter while the car must consist – for 85 percent – of locally manufactured components . In exchange, the LCGCs are exempted from luxury goods tax, which allows manufacturers and retailers to set cheaper prices. On the long-term, the government wants to turn Indonesia into an independent car manufacturing country that delivers completely built units of which all components are locally-manufactured in Indonesia. Indonesia is the second-largest car manufacturing nation in Southeast Asia and the ASEAN region . However, due to robust growth in recent years, Indonesia is expected to somewhat limit the gap with Thailand’s dominant position over the next decade.
This includes policies on industry and trade, energy, tax, safety standards, the use of technology, and environment. In global role, GAIKINDO is a partner of the automotive industry associations in various countries. This is mainly with associations in the countries where automotive industry becomes the backbone of the economy, and in particular with the principal countries whose products enter the Indonesian automotive market. Diverging markets will open opportunities for new players, which will initially focus on a few selected steps along the value chain and target only specific, economically attractive market segments—and then expand from there. While Tesla, Google, and Apple currently generate significant interest, we believe that they represent just the tip of the iceberg. Many more new players are likely to enter the market, especially cash-rich high-tech companies and start-ups.
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To overtake Thailand as the biggest car manufacturer in the ASEAN region will, however, require major efforts and breakthroughs. Currently, Indonesia is primarily dependent on foreign direct investment, particularly from Japan, for the establishment of onshore car manufacturing facilities. The country also needs to develop car component industries that support the car manufacturing industry.
California Bureau of Automotive Repair
Jongkie Sugiarto, Chairman of the Indonesian Automotive Industry Association , said the region east of Jakarta is selected by many car manufacturers for their production base since a decade ago as the area’s infrastructure is good . He added that it has now become difficult to find large-sized land for new factories due to the influx of many businesses over the past years. Currently, this electric motorcycle is in the massive production to produce 50 thousand units and will be in the marketplace in 2018.