Wholesale data compiled by the Indonesian Automobile Industry Association Gaikindo shows that in January this year, Indonesia’s new car sales fell from 69,619 in the same period in 2024 to 61,843, a year-on-year decrease of 11%.
Thanks to a slight increase in private consumption and slowing growth in Indonesia’s government spending and fixed investment, the Indonesian economy grew 5.0% year-on-year in the fourth quarter of 2024, slightly higher than the third quarter of 2024. In January this year, the Indonesian central bank raised the VAT rate from 11% to 12%, and further lowered the benchmark interest rate by 25 basis points to 5.75% to promote domestic consumption in Indonesia.
In January this year, Indonesia’s passenger car sales were also affected by the year-on-year increase in public holidays that month, down 14% year-on-year to 48,157 units, while commercial vehicle sales remained unchanged at 13,686 units.
As for car brands, in January this year, Toyota’s sales increased by 5% year-on-year to 22,082 vehicles, ranking first in sales; followed by Dafa Auto, with sales down 30% year-on-year to 9,983 vehicles; Honda’s sales Sales of Mitsubishi Motors fell 28% to 5,028 units and Suzuki Motors fell 19% to 4,982 units.
It is worth noting that in January this year, the sales of electric vehicles in the Indonesian market were 2,429. At present, the Indonesian government is building the country into a pure electric vehicle manufacturing center in the ASEAN region. The Indonesian government has formulated an ambitious plan to use its rich nickel reserves to build Indonesia’s domestic electric vehicle industry. Nickel is the key raw material for electric vehicle batteries. In order to attract electric vehicle-related investments around the world, the Indonesian government has been providing incentives such as tax cuts. It is reported that by 2030, Indonesia plans to produce about 600,000 electric vehicles.
In addition, Indonesia’s automobile production fell 8% year-on-year to 92,792 units in January, while Indonesia’s complete vehicle exports increased 15% year-on-year to 33,891 units in January.
Due to the significant weakening of Indonesia’s market sentiment in the past year, consumers’ willingness to buy large-scale goods has decreased. Indonesia’s total automobile sales in 2024 fell by 14% year-on-year to 865,723 vehicles. Among them, in January 2024,
Indonesia’s automobile sales decreased year-on-year. 29%, which is already relatively weak. This is the result of the decline in Indonesia’s automobile sales growth momentum after rebounding from the low point of the new crown epidemic in 2023.