Indonesia's new vehicle market continued to decline sharply in January 2021, by almost 34% to 52,910 units from already weak year-earlier sales of 79,983 units, according to member wholesale data compiled by industry association Gaikindo.

GDP declined by 2.1% last year on weak domestic consumption, investment and exports, as the country struggled with the highest number of COVID-19 infections in South-east Asia. Last year's prolonged restrictions on consumer and business activity, which have continued into 2021, have had a devastating impact on the small and medium business sector.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

While the central bank cut its benchmark interest rate to a historic low of 3.75% last year, the vehicle market plunged by over 48% to 532,027 units – making it the region's worst performing market in 2020.

Last month sales of passenger vehicles dropped by over 38% to 37,801 units, while sales of trucks and buses were down by just under 20% at 15,109 units.

Toyota reported a sales decline of over 34% to 16,033 units last month; followed by Daihatsu with an almost 37% fall to 8,993 units; Honda 7,231 units (-43%); Mitsubishi Motors 6765 (-26%); and Suzuki 6,400 units (-39%).

Earlier this month the Indonesian government said it will suspend the luxury tax on passenger vehicles with engines smaller than 1500cc for three months between March and May in the hope of reviving the vehicle market. The current luxury tax rate is between 10% and 30% of the cost of the car.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In the following three months, inclusive of June and August, the government will offer a 50% luxury tax discount, which will be halved again in the subsequent three months.