1Q14's 4W and 2W vehicles sales were in line - Daily Pack 15 April 2014

Domestic 1Q14 4W vehicles sales increased 11.0% y-o-y to 328.6k units, while 2W vehicles sales was flat at 1,981k units (+1.0% y-o-y). While Astra International (ASII IJ, Neutral, TP: IDR6,900)’s 4W vehicles sales grew 11.9% y-o-y, reached 173.3k units, and its 2W sales increased 3.7% y-o-y to 1,254k units. (Gaikindo, AISI, ASII, Bisnis Indonesia)

Comment:       

¨       The above 1Q14 4W and 2W vehicles sales were in line with our expectation which reached 25.4% and 24.4% respectively of our full-year estimates. ASII’s 2W market shares strengthened to 63.2% in 1Q14 (from 61.7% in 1Q13). ASII’s share in the domestic 4W market also increased to 52.8% in 1Q14 (from 52.3% in 1Q13) which was driven by robust sales of its low-cost green cars (LCGC) model, Toyota Agya and Daihatsu Ayla. While, Indomobil Sukses (IMAS IJ, Neutral, TP: IDR4,500)’s Nissan market shares dropped to 3.8% in 1Q14 (from 5.6% in 1Q13).

¨       On month-on-month basis, we see that Honda is the winner thanks to robust sales of its low-MPV Mobilio which was just launched at early this year. ASII’s market shares slipped to 51.3% in March (from 54.1% in February), driven by lower Daihatsu market shares which declined to 14.5% in March (from 17.0% in February). Daihatsu’s market shares was partly took-over by Honda which market shares lifted to 12.8% in March (from 10.7% in February). In term of sales volume, Daihatsu Xenia’s rank declined to number third (with 13,413 units sales in 1Q14), overtook by Honda Mobilio which is now in the second rank (with 18,341 units in 1Q14). Nissan shares in the domestic 4W vehicles market also declined to 3.7% in March (from 3.8% in February), while that of other brands were relatively flat. We maintain Neutral on Indonesia Auto sector.  (Andrey Wijaya)

FROM TRADING DESK: JCI today is expected to be traded at 4,847.67 and 4,906.7

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Best regards,

RHB OSK Indonesia Research Institute