Fashion
Car manufacturer PT Toyota Motor Manufacturing Indonesia (TMMIN) expects to see its exports fall by 5 percent this year mainly due to low demand in the Middle East.
TMMIN vice president director Warih Andang Tjahjono said, a protracted security crisis in the Middle East and global oil price decline had impacted car demand in the region. Thus, the company will see its car exports down to 165,000 units this year from 176,000 units last year.
Car exports to Saudi Arabia, which makes up 50 percent of the company’s exports to the Middle East, saw a 30 percent decline this year, the biggest in the region. The Middle East and Asia are the biggest markets for Toyota cars, contributing more than 50 percent to the company’s exports, Warih said.
While demand in the export market declined, domestic demand for Toyota cars has grown above the industry’s average.
As of November, Toyota car sales had risen by 19 percent year-on-year compared to the corresponding period last year, Toyota Astra Motor vice president director Henry Tanoto said.
“We predict our domestic car sales will reach between 375,000 and 380,000 units by year-end,” he said
