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Annual Demand for Pickups, Light-medium-heavy Trucks, and Buses to Touch 742,000 Units by 2025
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The commercial vehicle market in Indonesia has been shrinking from 2014 to 2016, with the market experiencing its lowest decline in 2016. Consequently, the production has also witnessed a decline over the years. Small Commercial Vehicles (SCVs) account for the largest segment in both sales and production. Japanese brands have the widest commercial vehicle distribution and service network in Indonesia. During the forecast period, the Indonesian commercial vehicle market is expected to witness a positive growth, despite challenges in terms of increased down payment rate, restriction on subsidized fuel, increasing price of raw materials, and global economic crisis. In all, 80% of Indonesia’s vehicle sales are financed, but in 2012, Indonesian Central Bank (ICB) raised the minimum down payment from 10% to 25% for CVs and 30% for passenger vehicles. This is likely to have a serious negative impact on overall vehicle sales in the country throughout the forecast period. However, OEMs can overcome these challenges and restraints due to the various trends supporting the growth of the commercial vehicle market. This includes stable politics and positive economic growth, Indonesia emerging as a manufacturing hub, positive implications of AFTA and AEC, government FDI promotions, and growth of alternative fuel commercial vehicles. Indonesia has been on the path of political stability and reformist democracy, contributing to the country’s significant GDP growth for over the last 4 years. The government projects a continued steady growth in the short to medium term.
This study aims to research, analyze, and forecast the commercial vehicles market in Indonesia during 2012-2025. The scope of the study is
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