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Car News, Automotive Trends, and New Model Announcements
When gross domestic product growth boosts people’s purchasing power while consumer confidence is strong, people are willing to buy a car. However, in times of economic uncertainty (slowing economic expansion and reduced optimism – or pessimism – about future personal financial situations) people tend to postpone the purchase of relatively expensive items such as a car. While Indonesia has a well developed MPV and SUV manufacturing industry, the nation’s sedan industry is underdeveloped. This is a true missed opportunity in terms of export performance because about 80 percent of the world’s drivers use a sedan vehicle. The key reason why Indonesia has not developed a sedan industry is because the government’s tax system does not encourage the production and export of the sedan vehicle. The luxury goods tax on the sedan is 30 percent, while the tax on the MPV is set at 10 percent.
- Of that figure, only 14 countries currently possess the capability to design original production automobiles from the ground up.
- However, the potential risks of implementing the wrong strategies or falling behind competitors are growing each day.
- GESITS is the product of collaborative research between ITS and PT