Industry Trend Analysis - Growing Upper-Middle Income Class To Bolster Car Sales - APR 2017


BMI View: A growing upper-middle income class in Indon esia will bode well for growth i n new car sales over our 2017-2021 forecast period as rising consumer spending power leads to high leve ls of discretionary spending. This will support our bullish outlook for the country's passenger car segment, where we expect sales to grow at an annual average rate of 11.5% over our forecast period.

We believe that a growing upper- middle class in Indonesia will bode well for growth in the country's new vehicle market over our 2017-2021 forecast period as consumers move into higher income brackets and their ability to afford new car purchases improves. This will support our bullish outlook for the country's passenger car segment, where we expect sales to grow at an annual average rate of 11.5% over our forecast period (see 'Economic Expansion to Drive Growth in Car Sales', November 9 2016)

Growing Upper Middle Class Good For Car Sales

Car Sales To Continue Expansion
Indonesia - Passenger Car Sales, Units
f = BMI forecast. Source: Gaikindo, BMI

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