Automotive analyst, Jessada Thongpak predicted Indonesia would become the largest car market in Southeast Asia in 2014.
The estimate refers to the data in the country’s car market grew by 25% to a record 1.1 million through the sale of units in 2012.
With the large number of vehicles, it has created a traffic jam in Jakarta every day and increase air pollution.
That number, he said, approaching the position of Thailand as the biggest car market in Southeast Asia today with sales of 1.4 million vehicles.
"With a population base of 240 million people, Indonesia will emerge as the largest market in the region (Southeast Asia) in 2014," he explained as quoted by The West Australian, Monday (18/03/2013).
Despite the sample average economic growth of 6% in recent years, car ownership in Indonesia still stands at 45 vehicles per 1,000 people or a whole lot when compared to Thailand.
Unfortunately, car manufacturers in Western countries complained about the high tariffs on imported sedan type and luxury cars in Indonesia.
So it can not compete with Japanese car manufacturers can take advantage of the absence of fees and a free trade agreement for the country.
Not giving up, the European Union has had discussions with the Indonesian government to agree on the possibility of a European car company to compete in the Indonesian car market.
Data from the European Automobile Manufacturers Association noted, new car registrations in the country fell 8.7% in January. This realization was the lowest level since 1990.
Slowing the growth of renowned car brands such as Mercedes, BMW and Chevrolet cars because of tax enforcement completely built up by 40%, but if the car is assembled in Indonesia, only 10% -15%.
"All cars with global brands already available in Indonesia, and they (car manufacturers) are ready to invest and increase production capacity," said Thongpak.
The German carmaker Volkswagen plans to build an assembly plant in the next four years.
Neither the Chevrolet which has operated the factory outside Jakarta to assemble 40 thousand cars per year that are designed for the Indonesian market.
But the car brand from Japan, such as Toyota and Nissan managed to get attention from the people of Indonesia in the presence of the family car.
Even Toyota or Daihatsu controls more than 50% market share in the country through Kijang car production in the 1970′s, followed in 2003 by Avanza and Daihatsu Xenia is priced at less than U.S. $ 20 thousand per unit.
However, the luxury car manufacturer McLaren is preparing Commencing the first car showroom in a shopping mall in Jakarta in May, adjacent to the showroom Bentley and Jaguar.
Management of McLaren Automotive Asia hope it can sell 20 units of the car with price range of U.S. $ 670 thousand to U.S. $ 740 thousand per year.
The target is to add 12 units of McLaren cars have been sold to date in Indonesia. "The key is, we rely on the community’s desire to have a McLaren Indonesia," said director Ian Gorsuch McLaren Asia Pacific.