Japan’s Honda Expects Flat Car Sales In Indonesia In 2006
The Indonesian unit of Japan’s Honda Motor Co.(7267.TO) expects its sales of new four-wheeled vehicles in the country to be flat this year after a 15.6% growth last year, company executives said Thursday.
“The total car sales in Indonesia is expected to decline this year to 510,000 from 534,000 in 2004, but we are determined (for Honda sales) to reach 53,750 units this year,” said Jonfis Fandy, general manager for marketing at PT Honda Prospect Motor.
The company, which is 49% owned by Honda Motor, sold 53,750 units in Indonesia last year, giving it a 10.1% market share.
Auto companies expect that a sharp fuel price hike in October, rising interest rates, and inflation in Indonesia to hurt car sales in Indonesia this year.
Honda Prospect plans to introduce new types of 1,800 cc and 20,000 cc Honda Civic sedans in the Indonesian market during the first quarter of the year, president director Kenji Otaka said.
The company doesn’t have any large investment plan in Indonesia this year to boost capacity, Otaka said. The company will, however, invest in the development of new models and upgrade its information technology system, he said.
