City Car Sales Plummeted in January-February 2017

According to data released by the Indonesian Automotive Industry Association (Gaikindo), sales of non-LCGC city cars plummeted during the January-February 2017 period. In the first two months of the year, sales of this class of car fell by 41.83 percent compared to the same period last year. Throughout January-February 2017, only 2,511 units of this class were sold, compared to 4,317 units in the same period the previous year. The sales trend for this class of four-wheeled vehicles has been declining since 2013; indeed, throughout 2016, sales volume dropped sharply by 38.4 percent compared to 2015.

Honda Brio sales remained the highest in this class. Despite a decline, sales of this model still exceeded 1,000 units. Many factors contributed to the continued decline in this market segment, one of which is a shift in trends in the Indonesian four-wheeled vehicle market. The emergence of LCGCs (low cost green cars) is one such factor. Besides city cars, the LMPV (low multipurpose vehicle) segment with 7 seats has also been eroded by the presence of LCGCs.

(Read Databoks: [LCGCs displace LMPV dominance](http://databoks.katadata.co.id/datapublish/2017/03/07/mobil-murah-bakal-geser-dominasi-jenis-avanza-xenia))