Car Sales Predicted to Rise Ahead of Eid, LCGC a Preferred Choice

KatadataOTO – The Eid al-Fitr momentum is often considered the right time for people to buy new vehicles. Besides for the homecoming trip, a number of promos are offered during the month of Ramadan.

One of the car sales and credit services, Seva, explained that looking at last year's achievements, car sales figures did indeed increase ahead of Eid al-Fitr.

Therefore, amidst the various challenges in the automotive world, Seva is relying on this momentum to boost four-wheeled vehicle sales figures.

“In the months leading up to Eid al-Fitr, it might have increased by around 12 percent to 14 percent last year,” said David Thamrin, Product and Growth Division Head of Seva, when met in Jakarta some time ago.

Photo : TAM

He believes the trend will tend to increase closer to Eid al-Fitr. Meanwhile, the models of choice are also believed to be the same, with the majority being LCGC (low cost green car).

“Consumers are budget-conscious at the moment. The consideration is definitely to buy a car that is economical and affordable,” said David.

LCGC can be categorized as the cheapest four-wheeled vehicle compared to other models on the market.

There are even three-row or 7-seater configuration options with prices under IDR 200 million, which can accommodate the needs of the community, especially those who will be going on the homecoming trip with their families.

“Because they are actually first-car buyers at Seva. So it comes back to the Sigra, Calya, Ayla, and Agya,” said David.

The still-weak purchasing power is influenced by various factors such as the increase in VAT (Value Added Tax). Therefore, people are more cautious in making vehicle purchases, with some tending to switch to used cars.

Photo : Courtesy

We all know the economy is still quite challenging. That's why they (consumers) are turning to used cars,” said David.

However, he could not yet explain the percentage increase in detail. Because according to David, Seva can be considered a newcomer in the used car domain.

However, his party sees an opportunity for an increase in the used car industry in Indonesia, especially in 2025. Moreover, purchases can now be made easily and the price tags are much more varied.