According to foreign media reports, data released by the Indonesian Automotive Association on March 11 showed that the country's automobile sales in February increased by 2.2% year-on-year to 72,295 units, compared with 70,772 units in the same period last year. This is the first time that Indonesia's automobile sales have increased since June 2023.
Indonesia's auto sales have been facing challenges due to weak spending power and a tendency for people to postpone car purchases during last year's national election, officials from the Indonesian Automotive Industry Association (Gaikindo) told local media.
However, the situation has improved now. Jo, co-chairman of the Indonesian Automotive Industry AssociationNgkie D. Sugiarto said that in addition to the improving economic situation this year, the increasingly affordable prices of electric vehicles are also seen as a key driver of the growth in vehicle sales.
In addition, in February, Indonesia held a major auto show, during which car sales increased 19% year-on-year to 8 trillion rupiah (about US$490 million), according to Indonesian business news website Bisnis.com.
In recent years, several Chinese electric vehicle brands have entered the Indonesian market after the Indonesian government offered a wide range of incentives to electric vehicle manufacturers investing in the country.
Among them, BYD and Chery Automobile were among the brands with the highest sales growth in Indonesia in February. BYD, which has been increasing its layout in the Southeast Asian market, started selling cars in Indonesia in June 2024. As of November 2024, the company accounted for about 36% of the market share in Indonesia's pure electric vehicle sales.
Meanwhile, Japanese automakers such as Toyota, Daihatsu, Honda and Mitsubishi Motors still dominate Indonesia's auto market.
Indonesia's automotive industry association expects vehicle sales to reach 900,000 units in 2025, up slightly from 865,723 in 2024.
