Toyota Indonesia to see exports down by 5 percent this year
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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
Questions & Answers
Q.What is the primary reason for the expected decrease in Toyota Indonesia's car exports this year?
What is the primary reason for the expected decrease in Toyota Indonesia's car exports this year?
The main reason for the anticipated 5 percent fall in exports is low demand in the Middle East. A prolonged security crisis and declining global oil prices have negatively affected car demand in that region.
Q.Which specific country's decline in demand has most significantly impacted Toyota Indonesia's exports to the Middle East?
Which specific country's decline in demand has most significantly impacted Toyota Indonesia's exports to the Middle East?
Saudi Arabia has seen the largest decline, with a 30 percent fall this year. It accounts for half of the company's exports to the Middle East, making its downturn particularly impactful.
Q.How do the trends in Toyota Indonesia's domestic car sales compare to its export performance this year?
How do the trends in Toyota Indonesia's domestic car sales compare to its export performance this year?
While exports are expected to decline, domestic demand for Toyota cars has grown, surpassing the industry average. Domestic sales rose by 19 percent year-on-year by November.
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