Frost & Sullivan, global research and analysis institute, predicted Indonesia's automotive output will grow 7.5 percent in 2013, local media reported Friday.

Vivek Vaidya, Vice President, Automotive & Transportation Practice - Asia Pacific Frost & Sullivan, said the growth was supported by Indonesia's fundamental economy, capital inflow, infrastructure development and rising production capacity in automotive industry.

"There will be an increase of 7.6 percent in four-wheel vehicles demand in 2013, from 780,500 units in 2012," Vaidya was quoted by Kompas.com as saying.

He said vehicles with low cost and green concept will start to take position in the market after government announced Low Cost Green Car (LCGC) regulation.

Frost & Sullivan reported that LCGC and Low Emission Carbon ( LEC) program will create new opportunity for the country to compete with Thailand in vehicles export market, especially in development countries, due to lower prices. "LEC and LCGC will switch Indonesia to higher position in global automotive industry, " he said.