In this area in West Java various big global car-makers invested in industrial estates as well as car and component manufacturing plants. Therefore, it has become the production base of Indonesia’s automotive sector and can be labelled the “Detroit of Indonesia”. Moreover, Indonesia experienced a remarkable transition as it evolved from being a merely export oriented car production center into a major car sales market due to rising per capita GDP. Safety in the automotive industry is particularly important and therefore highly regulated. Automobiles and other motor vehicles have to comply with a certain number of regulations, whether local or international, in order to be accepted on the market. The standard ISO 26262, is considered one of the best practice frameworks for achieving automotive functional safety.

Once technological and regulatory issues have been resolved, up to 15 percent of new cars sold in 2030 could be fully autonomous. Despite a shift toward shared mobility, vehicle unit sales will continue to grow, but likely at a lower rate of about 2 percent per year. Unlocking hydrogen’s power for long-haul freight transport August 2, 2022 – As the demand for hydrogen in transportation increases, it is imperative to develop infrastructure to supply trucks, buses, and… The Indonesian government also has high hopes for the country’s car exports , particularly since the implementation of the ASEAN Economic Community , which turns the ASEAN region into one single market and production area. The AEC should unlock more opportunities for exporters as it intensifies regional trade. Only about 1 percent of total car sales in Indonesia involve premium brands such as Mercedes-Benz and BMW.

Sign up and get the best of Automotive News delivered straight to your email inbox, free of charge. Yes, I’d like to receive email communications on editorial features, special offers, research and events and webinars from Automotive News. Monthly U.S. auto sales have been stuck at around 1.1 million since August 2021. Rising interest rates, affordability pose new hurdles as the fourth quarter begins.

  • The opportunity is ripe for all automakers to move forward and establish themselves as a sustainability leader.
  • The Detroit branch of Boston Consulting Group predicted that, by 2014, one-third of world demand would be in the four BRIC markets .
  • Due to the easier monetary policy and the end of the economic slowdown in 2016 (GDP growth accelerated to 5.02 percent y/y), Indonesian car sales finally rebounded in 2016.
  • Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise.
  • However, Japanese car manufacturers remain the dominant players in Indonesia’s car manufacturing industry, particularly the Toyota brand.

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Our 2021 Sustainability Report details our efforts concerning environmental, social and governance initiatives. Accenture, Faurecia and Affectiva are collaborating to innovate driver safety and in-car infotainment for occupants. Five-year agreement involves the creation of a global digital hubs network to support CNH Industrial in enhancing its digital capabilities. By acting now, traditional automakers can protect profitability and future-proof their sales and aftersales operations. It’s time to embrace the ecosystem and collaborate beyond industry lines to find new ways of innovating and partnering for success. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.

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