New vehicle sales in Indonesia declined by 4.7% to 96,200 units in November from 100,880 units a year earlier, according industry sources citing data released by industry association Gaikindo.

The market is struggling to make headway amid lacklustre economic growth, with full-year GDP growth expected to come in at just over 5% despite a rebound in export activity and higher commodity prices this year.

Vehicle sales in the first eleven months of the year increased by just 1.9% to 994,450 units compared with 975,860 units in the same period of last year.

The market increasingly is being driven by a recovery in commercial vehiclesales after four years of decline, spurred on by rising infrastructure and private construction investment and higher commodity prices.

Demand for passenger vehicles on the other hand has slowed significantly in recent months despite a series of interest rate cuts last year and heavy discounting by dealers.

Industry association Gaikindo now expected only a slight improvement in sales this year compared with last year, with full-year volumes projected at around 1.08 million units.