During 2005-2009, investment in the automotive sector has reached Rp 6 trillion. Going forward, this sector still attractive to automotive manufacturers for expansion and investment. In the next two years, several automakers including PT Hino Motors Manufacturing, PT Garuda Mataram Motor (ATPM Volkswagen), PT Astra Daihatsu Motor, PT Geely Cars Indonesia, will increase its production capacity. Investment required for expansion are estimated at U.S. $ 231 million.
The increase in automotive production capacity is supported by domestic market growth, improvement in purchasing power, and interest rates are still stable. However, inflation in 2011 is estimated higher than this year in line with increased economic growth.
Inflation and interest rates are factors that are relatively most sensitive to auto sales because of its effect on purchasing power and demand. If the view of financial support, the automotive industry is supported by the growth of the financing industry (multi). Support multi-finance industry is very important considering 80% of automotive purchases made through multi-finance services.
Until the third quarter of 2010, financing by finance companies has reached Rp 177.7 trillion or an increase of 27% compared to same period in 2009. About 90% of consumer financing by the company is a multi automotive financing.
Interest rates offered by multi company is still relatively low. In the future expected interest rates are still fairly stable multi line with the forecast increase in the BI rate, which is not too big and that is still adequate liquidity. In addition, delays in the implementation of restrictions on subsidized fuel also support the expected outlook for car sales that exceeded 800 thousand units in 2011.