New vehicle sales in Indonesia increased by 12% to 81,159 units in February 2026, up from 72,356 units a year earlier, according to wholesale data compiled by the local automotive industry association, Gaikindo.
The market continued to expand despite fewer working days during the month compared with last year due to the timing of the Lunar New Year holidays. Consumer sentiment has improved in recent months after the central bank cut its benchmark interest rate by 150 basis points since September 2024, to 4.75%. GDP growth accelerated to 5.4% in the fourth quarter of 2025, the strongest annualised growth since 2022, driven by strong domestic consumption and investment.
In the first two months of 2026, the local vehicle market expanded by almost 10% to 147,361 units from weak year-earlier sales of 134,440 units, with sales of light passenger vehicles rising by 5% to 110,367 units, while commercial vehicle sales rebounded by 26% to 36,994 units.
Sales of small internal combustion engine (ICE) passenger cars under the government’s ‘Affordable Energy Saving Car’ programme continued to decline sharply, falling by 21% to 22,106 units, while deliveries of battery electric vehicles (BEVs) surged almost fourfold to 25,834 units from 7,569 units.
Toyota’s sales declined by 8% year-on-year to 42,600 units in the first two months of the year, while Daihatsu’s sales rebounded by 18% to 25,965 units after falling sharply last year. Mitsubishi reported a 19% sales increase to 13,906 units, while Suzuki’s sales rose by 28% to 12,422 units after its deliveries more than doubled in February. BYD’s sales surged almost fourfold to 9,532 units, while Honda continued to struggle, with sales plunging by 41% to 9,401 units.
Overall vehicle production in the country rose by 8% to 209,543 units year-to-date, supported by a 23% rise in exports of fully assembled vehicles to 86,588 units.
GlobalData forecasts sales of light vehicles in Indonesia to continue to decline in 2026, by almost 4% to 721,000 units from 750,000 units in 2025, before rising by 7% to 771,000 units in 2027.
