New vehicle sales in Indonesia fell by 6.4% to 104,916 units in October, compared with 112,038 units sold a year earlier, according to data released by the Gaikindo automotive industry association.

Government data released last week shows third-quarter GDP growth slowing to just over 5%, with exports remaining weak and growth in private consumption and manufacturing output also moderating year-on-year.

Higher interest rates, the election of a new government and an expected hike in fuel prices added to consumer and business uncertainty in recent months.

Cumulative 10-month sales increased by 1.7% to 1,037,227 units, from 1,020,368 units previously, helped by the release of low-cost green cars (LCGCs) in the market just over a year ago. Sales of most other types of vehicles were lower in this period, however. 

The association also has raised concerns about rising stock which is forcing dealers into heavy discounting.

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