first_imgIndonesia’s automotive industry players can breathe a sigh of relief as national car sales in June rebounded strongly, promising a smoother road for the rest of the year, analysts have said.National car sales jumped more than threefold in June to 12,623 units from a record low 3,551 units a month before, according to Association of Indonesian Automotive Manufacturers (Gaikindo) data compiled by diversified conglomerate PT Astra International. Despite the rebound, sales in June were almost 79 percent lower year-on-year (yoy).In total, sales reached 260,933 units during the first half, a plunge of around 46 percent from the same period last year. “We expect the recovery to ramp up ahead,” RHB Sekuritas analyst Andrey Wijaya wrote in a research note dated July 16. “We are also positive on monthly sales, as national retail sales came up to 29,682 units (+74.8 percent mom [month-on-month], -54.6 percent yoy) – which means dealers’ businesses have begun to return to normal levels.”However, he warned that an increase in COVID-19 infections would have a severe negative impact on the auto industry, as well as a further weakening in global economic growth.Car sales have become one of the indicators of Indonesia’s household spending, which accounts for more than half of the country’s gross domestic product (GDP).Indonesia’s automotive industry was hit hard by the government’s decision to implement large scale social restrictions (PSBB) in several cities nationwide to curb the spread of the coronavirus. Car wholesales nosedived in April and hit rock bottom in May with a more than 95 percent annual drop as the pandemic hit demand. A rebound in car sales in June is highly likely due to pent up demand after most dealers closed their doors for more than two months due to the partial lockdowns, Sucor Sekuritas analysts wrote in a report on July 1.“Although it is still too early to conclude that purchasing power has returned, we are happy to see that sales performance has started to gain traction,” they wrote.“It is also our strong belief that the sales trend will further improve, albeit slowly, in the second half. At this juncture, we project car sales will decline by 30 to 40 percent yoy this year to only around 600,000 to 700,000 units versus 1.05 million units in 2019.”Previously, Gaikindo decided to cut its domestic car sales target this year by 40 percent to just 600,000 units. The association also slashed Indonesia’s car export target to 175,000 units in 2020 from the initial target of 350,000 to 400,000 units.Indonesia has recorded national car sales of around 1 million units annually in recent years.Gaikindo co-chairman Jongki Sugiarto told The Jakarta Post on Monday that carmakers aimed to sell at least 30,000 cars in July to achieve its sales projection of 100,000 cars in the April-July period.“If we could achieve 100,000 car sales in [in the April to July period], we could achieve our annual target. I believe we can achieve that,” he said.Automotive industry expert Bebin Djuana said on Tuesday that manufacturers should keep their production low despite the sales increase in June, as falling car demand from March to May caused rising car stocks in dealers across the country.Four-wheeled vehicle production reached over 82,000 and 89,000 units in February and March, respectively, according to Gaikindo data.The car production rate dropped by April and hit rock-bottom in May with only 1,997 cars being produced during the month. The production number climbed in June with 16,000 units, as car sales started to rebound.The improvement in the industry is expected to be beneficial for Astra, half of whose revenue is sourced from the automotive business, according to RHB Sekuritas and Sucor Sekuritas analysts.Astra, whose stocks trade at the Indonesia Stock Exchange (IDX) under the code ASII, traditionally hold more than half of the country’s car wholesale market share but its share dropped to a record low of 31 percent and 38 percent in May and June, respectively.“We believe ASII is likely to benefit in the longer term, supported by our unchanged thesis of an increase in demand for higher-capacity automobiles, as the new normal (social distancing, public health fears) may result in the public leaning more toward using private vehicles over public transportation,” Andrey of RHB said.Astra’s stocks had dropped 2.79 percent as of 2:36 p.m. Western Indonesia Time on Wednesday as the main gauge, the Jakarta Composite Index (JCI) slipped 0.24 percent. The stocks have lost 23 percent of their value in the last year. (prm)Topics :last_img read more


first_imgWest Indies cricketers sidelined as CSA postpones inaugural T20 leagueSeven West Indies cricketers were among those left in the lurch following Tuesday’s shock announcement of the postponement of South Africa’s inaugural Twenty20 Global League.West Indies batting superstar Chris Gayle, along with Dwayne Bravo, Chris Pollard, Dwayne Smith, Denesh Ramdin, Nicholas Pooran and Rayad Emrit, were all down to participate in the tournament scheduled to bowl off in early November. Barbados-born England all-rounder, Chris Jordan, was also expected to participate.Decision not taken lightly“We have not come to this decision lightly,” Cricket South Africa’s acting CEO, Thabang Moroe, said following a meeting with the T20 Global League board and consultation with franchise owners.“Having discussed the situation with all our stakeholders including the franchise owners, we believe that the interest of the League should be our first priority.“We have re-assessed our strategy and believe that postponing the first edition of the T20 Global League to next year will serve us well.”No reason givenWhile organizers gave no reason for the postponement, it is understood that the failure to secure a viable television broadcast deal and central rights sponsorship, was the main issue behind the decision.The build-up to the tournament had also been less than smooth and the resignation of CEO Haroon Lorgat two weeks ago, further complicated matters.The 2018 date for the tournament has not been announced.For recent news on West Indies cricket, click to read the following link: West Indies Cricket Players Sympathizelast_img read more


first_imgStill recovering from the 2010 earthquake that killed more than 250,000 people, Haiti has recorded 20 earthquakes during the first four months of this year. Director of the Bureau of Mines and Energy (BME), Claude Prepetit, told reporters that the BME’s Technical Unit of Seismology (UTS) recorded about 20 earthquakes with magnitudes between 3.1 and 4.6 with the majority occurring at depths between 10 and 25 kilometers (km).The UTS said that following the magnitude 7.2 earthquake that hit western Mexico, in February, it recorded at least six earthquakes west of Gonâve Island.Prepetit said that earthquakes are caused by the convergence of the Caribbean plate and the North American plate and Haiti is concerned by two major seismic faults alongside other minor faults.He said while earthquakes are not predictable, the authorities here have taken measures to minimize damage.In January 2010, the 7.0 earthquake caused widespread destruction to buildings. The authorities said they had also recorded 52 aftershocks measuring 4.5 or greater 123 days after the catastrophic quake.last_img read more