New vehicle sales in Indonesia expanded by 2.5% to 94,460 units in October, from 92,140 units a year earlier, according to member data released by industry association Gaikindo.

This represents a moderate rebound following a more than 5% drop in the previous month – the first monthly decline this year.

Sales in the first ten months of the year were 2.7% higher at 898,218 units – compared with 874,980 units in the same period of last year. The market increasingly is being driven by rising demand for commercial vehicles, with demand for passenger vehicles looking increasingly stagnant.

Rising investment in infrastructure and private construction projects, and more robust commodity and energy prices, is driving an increasingly strong rebound in the country's truck market year.

Fransiscus Soerjopranoto, general manager of the largest local vehicle distributor Toyota Astra Motor, told local reporters last week that sales of passenger vehicles has not improved this year. He now expects the overall market to fall short of Gaikindo's full-year forecast of 1.1 million units.