New vehicle sales in Indonesia increased by 2% to 72,295 units in February 2025 from 70,772 units in the same month of last year, according to wholesale data compiled by the local automotive industry association Gaikindo.
The market last month came up against weak year-earlier volumes, when sales dropped by 19% from peak post-pandemic levels – and also due to fewer working days during the month. Market sentiment has weakened significantly over the last year, with fewer consumers committing to large purchases, resulting in a 14% sales decline to 865,723 units in 2024.
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The latest government data shows the country’s economy expanded by just over 5.0% year-on-year in the fourth quarter of 2024, marginally better than in the previous quarter, supported by a slight improvement in private consumption while government spending and fixed investment growth slowed. Bank Indonesia cut its benchmark interest rate by a further 25 basis points to 5.75% in January to help support domestic consumption, following a hike in the VAT rate from 11% to 12% at the beginning of the year.
In the first two months of 2025 the vehicle market declined by 4.5% to 134,227 units from 140,530 units in the same period of last year, with sales of passenger vehicles falling by 7% to 104,835 units while commercial vehicle sales rose by almost 5% to 29,392 units.
Toyota’s sales increased by 4% to 46,479 units year-to-date, followed by Daihatsu with a 25% drop to 21,942 units; Honda with 16,033 units (-8%); Mitsubishi 11,712 units (-10%); and Suzuki 9,732 units (-13%).
Sales of battery electric vehicles (BEVs) more than doubled to 7,569 in the two-month period, with Chinese brands dominating this segment. BYD sold 3,450 units, helped by the recent launch of the Denza D9 model, followed by Chery Automobile with 1,372 units and SAIC-GM-Wuling with 1,362 units.
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By GlobalDataOverall vehicle production in the country fell by 6% to 204,965 units in January and February, while exports of fully-assembled vehicles increased by 3% to 70,212 units.
