Astra Optimistic Of Continued Increase In Car Sales

Jakarta, July 24 (Antara) - PT Astra International Tbk (ASII) said it is optimistic its motor vehicle sales will continue to increase amid gloomy market prospects. Demand for transport service will remain high in the country, Iwan Hadiantoro, chief of Group Treasury & Investor Relations of the country`s largest automotive company, said here on Tuesday evening. "As long as the government does not set limit to the number of vehicles running in the street, car sales will remain high," Iwan said. He said Astra would not cut its production of motor vehicles, adding he is also optimistic car sales would reach the target of 1.1 million-1.2 million units in the country this year. Based on data from the Association of Motor Vehicle Industries (Gaikindo), car sales in the country already reached 601,952 units in the first half of the year up from 535,261 units in the same period in 2012. Iwan said the recent increase in the prices of subsidized oil fuels and Bank Indonesian benchmark interest (BI rate) would have their impact on car and motorcycle credit interest rates, but so far there had been no significant effect on demand for motor vehicles. He said Astra is expected to be able to maintain monthly sales of 100,000 units of car on the domestic market. Normally, car sales increase 10 percent ahead of the Islamic Idul Fitri festivities, he said. He said Astra plans to sell around 10,000 units of cheap and low emission cars (low cost cost green cars) starting end of next month, adding Astra is waiting for the license from the government.