Material Scarcity Worries Auto Component Industries

Domestic auto component producers are worried after imported parts dominate the market. In the after-market component segment, for example, Chinese or Taiwanese products are cheaper and better than the local products.

The Indonesian Automotive Parts and Components Association (GIAMM) revealed that imported products hinder the growth of the domestic auto component industry and therefore the industry is no longer economically viable since most of the local producers are small to medium-sized businesses with limited production technological capabilities. As a result, imported parts and components dominate almost half of the products in the market, except for some particular brands supported by auto manufacturers.