Indonesia’s new vehicle market continued to rebound strongly in August 2021, by 123% to 83,319 units from depressed year-earlier sales of 37,291 units, according to member wholesale data compiled by industry association Gaikindo.
The market continued to be supported by record low interest rates and the suspension, in March 2021, of the luxury tax on vehicles with engines smaller than 1500cc which account for over 60% of total vehicle sales. This helped to offset the impact of social and business restrictions imposed at the beginning of July to fight the latest wave of COVID-19 infections.
Smaller tax discounts were also made available for a broader range of locally-produced light passenger vehicles, including four-wheel drive models and vehicles with engines up to 2.5-litres.
Earlier this month the government announced it would extend the luxury tax exemptions and discounts until the end of the year.
Total vehicle sales in the first eight months of 2021 rebounded by 68% to 543,424 units after falling by over 51% to 323,507 units in the same period of last year, with passenger vehicle sales rebounding by over 67% to 406,928 units while commercial vehicle sales surged by almost 69% to 136,496 units.
Toyota reported a sales increase of almost 78% to 173,835 units year-to-date, followed by Daihatsu with a 70% rise to 98,519 units, Mitsubishi 69,298 (+100%), Honda 64,848 units (+48%) and Suzuki 58,370 units (+51%).