New vehicle sales in Indonesia expanded by 14% to 69,219 units in May 2026, up from weak year-earlier sales of 60,697 units, according to wholesale data compiled by the local automotive industry association, Gaikindo. The market was driven by strong demand for light- and medium-duty commercial vehicles and for battery electric vehicles (BEVs)

In the first five months of 2026, the country’s vehicle market expanded by almost 13% to 359,015 units from weak year-earlier sales of 318,344 units, with sales of light passenger vehicles rising by 6% to 266,083 units, while commercial vehicle sales surged by 37% to 93,012 units. BEV sales more than doubled to over 62,700 units, up from 30,150 units in the same period a year earlier, supported by tax incentives and driven by a rising number of Chinese brands.

The vehicle market this year has been supported by a pick-up in economic growth, with GDP growth accelerating to 5.6% year-on-year in the first quarter compared with 5.4% growth in the fourth quarter of last year. Private consumption growth accelerated to 5.5% from 5.1%, supported by strong consumer sentiment. Bank Indonesia hiked its benchmark interest rate twice in the last month, from 4.75% to 5.50%, reversing two years of monetary loosening from a peak of 6.25% to tackle rising inflation and a rapidly depreciating rupiah.

Toyota continued to lead the vehicle market in the first five months of the year, with sales rising by almost 5% to 111,119 units, while Daihatsu sales increased by 8% to 59,420 units after falling sharply last year. Suzuki’s sales surged by 36% to 30,262 units, following the release of new models over the last year, while Mitsubishi reported a 9% sales increase to 28,445 units, Honda’s sales continued to plunge, by 36% to 18,271 units.

BYD’s sales rose by 50% to 17,993 units year-to-date, with deliveries declining sharply last month as competition from rival Chinese brands continued to surge, while its Denza brand saw its sales fall by 40% to 2,369 units. Chery’s sales surged by 155% to 20,889 units, thanks to a strong performance by its newly-launched Jaecoo brand.

Overall vehicle production in the country rose by 9.5% to 504,020 units year-to-date, while exports of fully assembled vehicles rose by almost 8% to 207,222 units.

GlobalData has upgraded its Indonesia market forecast following the strong sales performance year-to-date, driven by strong first-quarter economic growth. Light vehicle sales are now expected to fall slightly to 747,000 units in 2026, from 750,000 units in 2025, followed by a slight increase to 752,000 units in 2027.