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Senin, 18 April 2011

Automotive March 2011 4W sales reached 82K, up 18% m-o-m - DBS Vickers

It was reported in the news that 4W sales in March 2011 grew 18% m-o-m to 82,056 units according to Gaikindo figures. The significant m-o-m growth was partly attributable to February being a shorter month. Nevertheless 4W sales have been good in early 2011, reflecting the economic growth in Indonesia . On quarterly basis, 4W sales in Q1 2011 amounted to 225,411 units, in line with our forecast for the year. We view this as a positive start since the early part of the year is normally a slow period for auto sales. However, the near term concern for 4W sales is on the impact on supply chain post Japan earthquake as Japanese cars dominated the 4W market in Indonesia . While auto manufacturers in Japan have resumed production, the impact on the 4W supply chain still needs to be closely monitored in the next few months. Gaikindo recently reduced its forecast for 2011 4W sales to 800,000 units from 850,000 previously while our estimate is over 850,000 units.

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