ASII - 4W sales volume soar in Aug23

ASII - 4W sales volume soar in Aug23 Astra International (ASII) is gaining profits from the Gaikindo Indonesia International Auto Show (GIIAS) event in August 2023. The Association of Indonesian Automotive Industries (Gaikindo) reported that wholesale sales in August 2023 reached 88,876 units, or an increase of 10.5% compared to July 2023. Retail sales also increased 12.5% to 88,865 units in August 2023. Along with the national increase, ASII also felt this blessing. Car brands under ASII are firmly at the peak of sales. Astra car sales increased 4.62% compared to the previous month to 64,194 units. In July 2023, sales of all ASII cars will reach 61,358 units. In terms of market share, the Astra Group holds 57% of the market. For the LCGC market, Astra still dominates with a market share of 72%. According to Astra, Toyota and Daihatsu, which are under ASII, led sales throughout Jan23-Aug23 with 220,454 units and 132,542 units, respectively. Then, in terms of market share, Toyota holds 32.6% of the market. Meanwhile, Daihatsu is recorded as controlling a market share of 19.6%. (Source: Kontan) . Comment: With the previous Aug23 and 8M23 solid sales volume, we expect 2023 4W sales could surpass our ‘23F car sales for domestic auto sales. Gaikindo is expecting 1mn units of car sold this year and slightly above our expectation at 966,753 units. We believe Astra will continue to lead the industry landscape competition and maintaining its market share at around 54.5%. Various continuing promotion, longer credit tenor and discount as well as free 1 or 2 years insurance will continue to play important role amidst the high interest rate environment, in our view.