Since the Indonesian economy is currently growing in leaps and bounds, it seems to be the place to sell cars. Of course, once one has some extra money to play with, a great way of showing it off is via his or her new flashy cars. Auto manufactures around Asia are honing in on this newfound wealth as well. Indeed, in 2011, Indonesians purchased 890,400 cars – a figure – according to Frost and Sullivan, that is set to increase to close to 940,000 this year. As well – perhaps somewhat surprisingly – it seems that now Thailand is lagging behind Indonesia in the region.
Foreign Eastern Automakers
In addition, automakers from out of Indonesia in 2011 promised to put close to $2bn into the country over the next few years, but time will tell if this is actualized. Currently, Japanese manufacturers hold 90 percent of the market with Toyota boasting a second production plant about to launch. As well, Suzuki is planning a third and Nissan is hoping to spend $250m to expand its current facilities. Toyota also aims to boost its production by 70,000 by next year. Both Nissan and Suzuki enjoyed huge increases in sales last year (Nissan by 50 percent and Suzuki by a third).
Foreign Western Automakers
It is not just companies in the east who are trying to make big profits in Indonesia in the car market. Ford and General Motors are also trying to get in on the act. For example, in 2011, Ford sold double the amount of cars it did in 2010; it hopes to repeat this success this year too.