New vehicle sales in Indonesia continued to decline in September 2025, falling by 15% to 62,071 units from 73,108 units in the same month last year, according to wholesale data compiled by the local automotive industry association Gaikindo.

Market sentiment in the country remains weak, with fewer consumers committing to purchases of durable goods. The latest government data shows GDP growth accelerated to 5.1% year-on-year in the second quarter, up from a downwardly revised 4.9% in the first quarter, mainly due mainly to stronger investment activity and exports. Bank Indonesia cut its benchmark interest rate by 25 basis points for the sixth time in September, to 4.75% from a peak of 6.25% just a year earlier, to help drive up consumer spending.

In the first nine months of 2025, the vehicle market shrank by over 11% year-on-year to 561,819 units after declining by 16% to 633,660 units in the same period last year, with sales of light passenger vehicles falling by 13% to 431,085 units, while commercial vehicle sales declined by 7% to 130,734 units.

Toyota’s nine-month sales declined by 13% to 181,817 units, while Daihatsu’s sales dropped by 24% to 95,307 units; Mitsubishi 48,944 units (-10%); Honda 46,623 units (-33%); and Suzuki 44,253 units (-10%). Sales of small passenger cars under the government’s ‘affordable energy saving car’ programme plunged by 34% to 89,051 units in this period.

Japanese automakers have also come under increased pressure from the growing presence of Chinese brands in this market, which have been behind the sharp rise in battery electric vehicle (BEV) sales in the last two years. BEV sales doubled to 54,593 units in the first nine months of 2025, with BYD and its Denza brand accounting for 26,852 units combined, followed by SAIC-GM-Wuling with 8,345 units and Chery/Omoda with 6,615 units.

Overall vehicle production in the country fell by 3.4% to 854,952 units year-to-date, supported by an 11% rise in exports of fully-assembled vehicles to 382,374 units.