Indonesia car sales hit 19-month high in May

Car sales in Indonesia hit the highest level in the last 19 months in May thanks to the launching of many new models and declining bank interest.

Sales in May reached 38,333 units to become the highest selling month since October 2005, up by 66.5 percent from 23,022 units in the same month last year and 8.5 percent when compared with April 2007, according to the data released by the Indonesian automotive industries association Gaikindo reaching here Tuesday.

In five months ending in May 2007, car sales rose by 26.5 percent to 158,189 units against 125,011 units in the corresponding period last year.

The Indonesian central bank has constantly cut the benchmark interest rate since May last year to force banks to boost their lending exposure. The central bank rate now stands at 8.5 percent.

The auto market also got a boost from the launching of various new, affordable models by such leading producers as Toyota, Daihatsu and Suzuki.