New car financing surges despite lower automobile sales in Q1 2024 – Economy
ultifinance firms saw outstanding loans for new cars continue to increase in the first quarter of this year despite carmakers reporting a drop in sales.
The Financial Services Authority (OJK) stated on Monday that outstanding loans for new car purchases rose by 14.19 percent year-on-year (yoy) in the first three months of this year.
Meanwhile, carmakers saw new car sales down by 23.9 percent yoy to 215,000 units in the same period, according to Indonesian Automotive Manufacturers Association (Gaikindo) data.
“The OJK will continue to monitor the impact of the drop in new vehicle sales on the performance of multifinance firms,” said Agusman, the OJK’s supervisor for multifinance, venture capital and other financial services, during a press briefing.
Overall, outstanding loans of multifinance firms grew 12.17 percent to Rp 488.52 trillion (US$30.36 billion) in March, much higher than the 11.73 percent yoy recorded the preceding month.
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On May 6, major credit rating agency Fitch Ratings said the decline in new car sales in Indonesia may push local multifinance companies to seek growth in other sectors, such as used car loans.
