At the Indonesia International Motor Show, commercial auto manufacturers gather to set up large booths and display their wares. In Indonesia, Japanese car companies are fortunate enough to take up the majority of the market share in terms of consumer and commercial vehicles, but what is the sales vibe there on the showroom floor? We asked the Hino president in the country what he thinks.
“The commercial vehicle market’s ups and downs are extremely volitile,” says president of Hino Motor Sales Indonesia Hiro Kayaki. After 2014, while sales may have been slumping downward, as of halfway through 2016 the market has perked back up. The reason for this is that demand for dump trucks used for mining ore has come back along with the price of coal increasing, with people looking to trade in or buy new.
In addition to this, since shifting to the Joko government, there have been strides made to stimulate infrastructure, leading to the demand for cars used for construction growing. Incidentally, the market for trucks used to transport consumables is growing as well, according to Mr. Kayaki.
However, one of the problems facing this market is that logistical infrastructure hasn’t caught up with demand. “The roads and workstations aren’t what they need to be. In countries nearby like Thailand and Malaysia, these things are being developed with the logistical network known as Hakomono, but here thanks to the Joko government, facilities are starting to be built. We’re going to keep an eye on how things develop from here on out and think about where we want to go from here.”
Written by Hayato Furusho
(Translated by Bryce Clarke)