Automotive Parts Industry in Indonesia

Automotive parts background

The automotive industry in Indonesia has suggestively increased during the past several years with more and more people investing in 2 and 4 wheel vehicles used as a primary mode of transportation for many individuals and families in Indonesia. According to the Indonesia Investments website (www.indonesia-investments.com), car sales for the first six months of 2013 have topped the 500,000 sales mark and strong sales numbers are expected for the remainder of 2013.

During the past 5 years, automotive sales totalled a staggering amount of more than 4 million vehicles sold in Indonesia alone. Experts in the automotive sales industry are predicting similar sales numbers for 2014 and beyond. No doubt the automotive parts industry is bound to see significant increases in demands for replacement parts during the next couple of years as older model vehicles begin to show signs of wear and tear.

Indonesia’s automotive parts market

During the past several years, the automotive parts market in Indonesia has seen a significant increase in demand due in large part to the rising middle class throughout the entire country. Poor public transportations systems have forced people to invest in their own form of transportation and other market place actions has afforded more and more people the opportunity to own a vehicle. There are some drawbacks to purchasing a newer model automobile in Indonesia which is forcing people to seek out automotive parts to repair older modelled vehicles versus buying a newer modelled vehicle in the marketplace.

Let’s take a look at some of the key drivers and major barriers the automotive parts industry may be dealing with in the current Indonesian markets, in the attached report.