Indonesia's Car Exports In 2024 Predicted To Decline

Monday, 04 Nov 2024

By ferry@insightinnews.com Car exports from Indonesia in 2024 are expected to decline. This drop is due to weakened global demand. However, some regions are showing an increase in shipping requests. "Our exports are likely to decrease because of the weak demand," said Bob Azam, Vice President Director of PT Toyota Motor Manufacturing Indonesia (TMMIN), to reporters at the University of Indonesia, Depok, on Wednesday (October 30, 2024). "Overall, global demand is down, possibly by 5-10%. But it varies by region," he added. Bob noted that while some areas are seeing a drop in demand, others are experiencing an increase. However, the rise in demand is mainly due to increased supply rather than high demand. "There is a phenomenon we need time to study. In some export destination countries, demand has actually increased. We suspect this is due to those governments anticipating logistics disruptions from the war, leading them to boost their inventory. So, it’s not because of high demand," explained Bob. Currently, there is a conflict involving Israel and several Middle Eastern countries like Palestine, Lebanon, and Iran. Bob mentioned that if the war escalates, the Suez Canal could be closed. Therefore, before that happens, importing countries are increasing their stock of cars from Indonesia. "They are adding to their stock. Right now, Israel and Iran are already 'sharing' the situation. If the Suez Canal is affected, the route will shift to Tanjung Harapan. This will not only take longer but also increase costs," Bob added. "We see that some of our export destination countries are increasing their inventory to prepare for such situations," Bob concluded.

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