Commercial Vehicle Financing Predicted to Pass through Passenger Vehicles

PT Mandiri Tunas Finance (MTF) expects the commercial vehicle financing segment to reach 20 percent this year.

MTF Marketing Director Harjanto Tjitohardjojo assumes the growth of commercial vehicle financing will be higher than passenger car segment. According to him, passenger car market is still difficult to drive because there are still a number of challenges.

“Progressive tax policy and mass transportation infrastructure are a challenge in the passenger market,” Harjanto said. “For passenger may be helped by the emergence of new types. But the prediction of the passenger market is the same as this year. ”

He revealed based on the latest data as of November 2017, financing the passenger car segment grew 15% over the same period the previous year. While the largest growth occurred in the segment of commercial vehicles, which is 25%.

This year, he predicts that the growth of commercial vehicle financing will still be above the growth of passenger vehicle financing which is estimated to be around 20 percent.

Demand for commercial vehicle financing is predicted to increase in the outer regions of Java Island such as Kalimantan and Sumatra. This was boosted by improving commodity prices in the area.