New vehicle sales in Indonesia surged by 33% to 77,550 units in June 2026, up from weak year-earlier sales of 58,363 units, according to wholesale data compiled by the local automotive industry association, Gaikindo. The market last month was driven higher by strong demand for light- and medium-duty commercial vehicles and battery electric vehicles (BEVs).

In the first six months of 2026, the country’s vehicle market expanded by 16% to 436,564 units, after declining by 9% to 376,707 units a year earlier, with sales of light passenger vehicles rising by over 9% to 322,410 units, while commercial vehicle sales increased by 39% to 114,154 units, driven by a 51% surge in light commercial vehicles to 66,004 units and a 55% jump in medium-duty truck sales to 26,744 units.

Sales of light passenger BEVs more than doubled to 70,860 units, up from 34,890 units in the same period a year earlier, supported by tax incentives and driven by a sharp rise in the 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 following growth of 5.4% 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 three times in the last two months months, from 4.75% to 5.75%, reversing two years of monetary loosening from a peak of 6.25% - mainly to support the weak rupiah.

Toyota continued to lead the vehicle market in the first six months of the year, with sales rising by over 8% to 133,928 units, while Daihatsu sales increased by 14% to 73,545 units after falling sharply last year. Suzuki’s sales surged by 33% to 36,319 units, following the release of new models over the last year, while Mitsubishi reported a 5% sales increase to 32,588 units. BYD moved into fifth place after its rose by 65% to 23,257 units, ahead of Honda which reported a 37% plunge to 20,673 units.

Overall vehicle production in the country rose by 11% to 615,495 units year-to-date, while exports of fully assembled vehicles rose by almost 8% to 51,705 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 748,000 units in 2026, from 750,000 units in 2025, with volumes expected to remain unchanged at 748,000 units in 2027.