Car sales in Indonesia dip 7per cent in April despite expanded tax cut

JAKARTA (The Jakarta Post/ANN): Domestic car sales dipped in April but still hovered above industry expectations as negative first-quarter household spending countered a car tax incentive introduced that month.

Sales dipped 7 per cent month-on-month (mtm) to 78,908 vehicles in April, a figure above the industry’s expected 70,000 units, after the Finance Ministry introduced a luxury tax (PPnBM) cut for cars with engine capacities between 1,500 cc and 2,500 cc, according to Indonesian Car Producers Association (Gaikindo) data.