New vehicle sales in Indonesia increased by almost 18% to 94,100 units in December 2025, up from 79,806 units a year earlier, according to wholesale data compiled by the local automotive industry association Gaikindo.
The market last month rebounded strongly from weak year-earlier volumes, ahead of the expiry of battery electric vehicle (BEV) import incentives and aggressive year-end promotions by dealers. Consumer sentiment has also improved in recent months after the central bank cut its benchmark interest rate by 150 basis points since September 2024, to 4.75%. The economy is estimated to have expanded by over 5% year-on-year in the fourth quarter of 2025, with the government scheduled to release its preliminary data early next month.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
In the whole of 2025, the Indonesian vehicle market declined by 7% to 803,687 units after falling by 14% to 865,723 units in 2024, with sales of light passenger vehicles falling by 9% to 613,000 units while commercial vehicles fell by just 1% to 190,687 units. Sales of small internal combustion engine (ICE) passenger cars under the government’s ‘affordable energy saving car’ programme plunged by 31% to 122,686 units last year.
Toyota’s sales declined by 13% to 282,982 units last year, while Daihatsu’s sales dropped by 20% to 130,677 units; Mitsubishi sold 71,781 units (-1%); Suzuki 66,345 units (-1%); and Honda 56,500 units (-40%).
Japanese automakers have come under increasing pressure from the growing presence of Chinese brands in this market, which have been behind the sharp rise in battery electric vehicle (BEV) sales in the last two years. BEV sales in December surged by 134% to 23,242 units, while over the full-year sales more than doubled to 106,644 units. BYD and its Denza brand accounted for 54,248 units combined – or 51% of total BEV sales, followed by SAIC-GM-Wuling with 16,122 units and Chery/Omoda/Jaecoo with 9,170 units.
Overall vehicle production in the country fell by 4% to 1,147,600 units last year, supported by a 10% rise in exports of fully-assembled vehicles to 518,212 units.
GlobalData forecasts sales of light vehicles up to 6 tons gvw in Indonesia to grow just slightly next year to 736,859 units, up from an estimated 729,756 units in 2025, supported by the central bank’s recent interest rate cuts and growing pent-up demand, following the recent market declines.
