Indonesia’s new vehicle market continued to rebound strongly in June 2021, to 72,720 units from depressed year-earlier sales of 12,623 units, according to member wholesale data compiled by industry association Gaikindo.

The strong sales end to the quarter came against very weak year-earlier volume when the economy began to emerge from a strict lockdown to help control the initial spread of the COVID-19 pandemic.

Vehicle sales surged by close to 760% year-on-year to 206,443 units in the second quarter of 2021 after plunging by almost 90% to 24,042 units in the same period of last year.

Vehicle demand in the country has also been lifted by continued record-low interest rates and by the suspension in March 2021 of the luxury tax on vehicles with engines smaller than 1500cc, as the government looked to kick-start the domestic economy.

The tax cut has since extended until the end of August to provide additional support to the local vehicle industry.

Total vehicle sales in the first six months of 2021 increased by almost 51% to 393,469 units from 260,932units in the same period of last year, as passenger vehicle sales jumped by over to 46% to 291,190 units while commercial vehicle sales rebounded by close to 66% to 102,279 units.

Toyota reported a sales increase of over 48% to 121,334 units year-to-date followed by Daihatsu with a 50.3% % rise to 74,827 units, Honda 48,481 units (+25.1%), Mitsubishi 47,913 (+71.5%) and Suzuki 36,185 units (+25.7%).

The resurgence of the coronavirus in the country in the last month, in the form of the Delta variant, has forced the government to impose its strictest nationwide lockdown yet as the country’s healthcare system struggles to cope with record numbers of daily infections and serious illnesses.

The new lockdown means that new vehicle sales will plunge once again in July after staging a strong recovery in the second quarter.