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Indonesia has the world’s fourth most populous country with a vast market. Especially in the past two years, Indonesia’s annual economic growth rate of 6% and the maintenance of the interest rate of currencies below the historical average have attracted the attention of investors from all walks of life. It also includes Chinese auto companies.
In 2010, Indonesia's domestic car sales exceeded 700,000 vehicles, making it surpassed Thailand (680,000) to become the largest auto market in the ASEAN region. According to Zoni Dharmawan, chairman of the Indonesian Locomotive Industry Federation, “Increase in commercial vehicle sales driven by a surge in horticulture and mining product exports, Indonesia is the largest market for commercial vehicles in Southeast Asia with a total vehicle weight of over 3 tons.â€
According to statistics, domestic commercial vehicle sales in Indonesia have reached 107,470 since 2011, an increase of 86% year-on-year. Sales of commercial vehicles accounted for 29% of the total sales of domestic cars. This is mainly due to the substantial increase in fixed investment (especially foreign investment), mining industry continues to arouse the interest of foreign investors, especially the rising demand from coal mines in China and India, coupled with its central bank to maintain low interest rate policy.
The potential of Indonesia's commercial vehicle market has also made commercial vehicle companies in China see business opportunities. In recent years, China's commercial vehicle companies have gradually accelerated their pace in developing the Indonesian market.
At the end of 2009, Foton Motors Changsha Automobile Factory signed a contract for 5000 Fukuda-era light trucks with Michna, the largest oil company in Indonesia, with a total value of RMB 320 million. In July last year, Beiqi Foton Motor Co., Ltd. opened its first 4S sales display center in Jakarta, Indonesia. Hualing Heavy Trucks achieved an export business last month after receiving 150 large Indonesian orders in March. Hualing signed a contract to purchase 400 CAMC trucks and related spare parts in Indonesia. The way of goods will be delivered within one month. At this point, the Valin Mine Dump Truck officially entered the Indonesian procurement system.
China's commercial vehicles have great potential in ASEAN, because in addition to Thailand's commercial vehicles have a certain degree of competitiveness, other local companies basically have no strength to compete with Chinese companies, which all provide space for Chinese commercial vehicle companies. In Indonesia’s top three auto markets, Indonesia’s potential is even greater.
As Indonesia's economy continues to grow, domestic investment and construction will naturally require a large number of commercial vehicles. It is believed that China's commercial vehicle companies will study the Indonesian market meticulously and will certainly have outstanding performance.
Indonesia's commercial vehicle market is broad, Chinese companies accelerate their pace to open up markets