AUTOMOTIVE SALES SLOWDOWN IN FIRST QUARTER

Entire automotive sales of nation shows slowdown trend in the first quarter 2016. This set impact on the slow down of motor vehicle slowdown portofolio since the end period of last year 2015.

Referring to the latest data of the Financial Services Authority (FSA), auto loans fell 3.18% to Rp 119.45 trillion as of March 2016 compared to the same period in 2015 tang which reached Rp 123.38 trillion. The decline in lending vehicles have occurred since last year.

For comparison, in December 2015, auto loans amounting to Rp 120.55 trillion. Furthermore, CLA during January, February and March 2016 respectively dropped to Rp 121.97 trillion, Rp 119.72 billion and Rp 119.45 trillion.

According to central asia bank(BCA) consumer director, the slowdown trend will be predicted to continue in the next period. Thus, BCA will not determine high growth of automotive credit ranging from 7-10% in the next period. 

In the first quarter of 2016, the Bank has channeled KKB Rp 32.68 trillion, up 13.8% compared to the same period in 2015. The growth of high credit flowing 80% to a new vehicle. KKB BCA spur growth through a single-digit lending deals with long tenor. Meanwhile another private sector bank

CIMB Niaga, agreed on the flat growth and recorded a decrease of 3.1% CLA to Rp 18.21 trillion in the first quarter of 2016. The portion of financing through its subsidiary contributed Rp 15.99 trillion.

On the contrary, one of the state owned bank, mandiri bank has different opinion. They still put a high target on automotive credit based on the high demand of the automotive in the next period. It is listed that mandiri chalked growth of 23.20% to Rp 18.34 trillion as of March 2016. Bank Mandiri credit to boost their business through two subsidiaries: Mandiri Utama Finance (MUF) for used vehicles and Mandiri Tunas Finance (MTF) for the new vehicle.

Through MUF and MTF, the government-owned bank credit work on cars and motorcycles as well.

In all, the slow down of automotive credit is the corollary of nation economy slowdown which is basically the global phenomenon. To push the growth, government push through the call of budget absorption to fasten the infrastructure and purchasing power of the consumers. Another policy of the increasing of income per capita of the factory workers result on the work termination and efficiency program of the factories. Thus the rate of jobless increases inaline with the detention of the factory to recruit the workers.