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However, it is difficult for Indonesia to spice up its automotive exports as a end result of the nation’s automotive industry continues to be on the Euro 2 stage, while other nations are already at Euro 5 . Other issues that limit automotive exports are concerns about safety standards and know-how. The LCGC has turn out to be a very popular car in Indonesia and now contributes almost 25 p.c to total home car sales. Considering the nation’s per capita GDP remains to be under USD $4,000, affordability is usually an important factor for Indonesian shoppers when shopping for a automobile, and this may explain shoppers’ shift to the LCGC. For example, metropolis automobile sales in Indonesia have plunged dramatically since the launch of the LCGC.
Indonesians take pleasure in taking trips with the family (and/or invite some friends) and due to this fact a giant automotive is required. When gross home product growth boosts folks’s purchasing energy whereas client confidence is robust, people are keen to buy a car. Although the comparatively new low-cost green automotive has gained reputation in Indonesia , most Indonesians nonetheless prefer to purchase the multipurpose car . Indonesians love the MPV, known as “folks carriers”, as these vehicles are bigger and taller than most other automobile varieties. Indonesians want a giant automotive as a end result of they get pleasure from taking trips with the household (and/or invite some friends).