As A Result Of The COVID-19 Pandemic, Car Sales In 2020 Are Predicted To Fall By 41.8 Percent

Illustration. (Photo: Ministry of PUPR)

JAKARTA - The independent research institute Mandiri Institute estimates that car sales throughout 2020 will only reach 610 thousand units, this is due to the pressure of the COVID-19 pandemic on the automotive sector. This number contracted by 41.8 percent compared to last year.

Mandiri Institute Senior Research Specialist Andre Simangunsong explained, the decline in car sales occurred in various categories. Starting from wholesale , passenger vehicles, to commercial.

Andre said car sales in the second quarter of this year were under the heaviest pressure. The sales rate is only 24 thousand units, down significantly from the first quarter which reached more than 230 thousand units.

However, he said, the level of car sales is projected to gradually improve in the third and fourth quarters. Each quarter is projected to sell around 147 thousand and more than 200 thousand units of cars.

"Indeed, we are projecting that in 2020, we think the decline in vehicle sales will reach 42 percent. To be precise 41.8 percent," he said, in Webinar # 3 Road to IDF 2021 with the theme "Prospects for Economic Recovery in the National Automotive Industry Sector", Wednesday, October 14. .

Andre said the recovery in car sales will continue until 2021. Mandiri Institute projects that the 2021 sales rate will grow 38.7 percent compared to this year, to 845 thousand.

"But with a record, the conditions are still the same as today. If there is intervention from the government, these numbers could change," he said.

Furthermore, Andre sees that the recovery in this sector will also continue until 2022 and 2023. According to the Mandiri Institute's records, the level of car sales is predicted to grow 10.7 percent in 2022 to 935 thousand. Growth slows down to a level of 0.6 percent to 941 thousand in 2023.