New vehicle sales in Indonesia increased by more than 56% year-on-year to a new monthly record of 95,541 units in May, compared with 61,055 units a year earlier, according to data released by automotive industry association, Gaikindo.

Strong economic growth, driven by high investments and low interest rates continue to push the market forward. Year-earlier sales were held back by stock shortages in the wake of last year's tsunami and earthquake in Japan.

The market in May was also lifted by the prospect of higher down-payment requirements for car loans, which Bank of Indonesia introduced on 15 June.

Cumulative sales for the five-month period were up almost 25% at 433,527 units, from 61,055 units a year earlier.