Indonesia’s Automobile Production Results in 2023

Indonesia's automobile production volume in 2023 decreased by 5.1% from the previous year to 1,395,717 units, which was a drop from the previous year’s record high but remained at a high level. CBU exports reached an historic high of approximately 500,000 units, but overall production scale was dragged down by a contraction in domestic demand, which decreased by 4.0% year on year to 1.01 million units.

Looking at production by vehicle type, passenger vehicle production decreased by 2.8% from the previous year to 1,180,355 units, and production of commercial vehicles dropped by 15.8% from the previous year to 215,362 units. Non-sedan vehicles fell by 1.8% year-on-year to 928,620 units. The production of LCGC compatible vehicles increased by 8.0% year-on-year to 231,590 units due to an increase in production of the Daihatsu Sigra. Pickup truck / truck production declined by 17.8% to 208,632 units. On the other hand, bus production surged by 3.3 times to 6,730 units.

There was no change in the rankings of the top three automakers. Although Daihatsu’s production declined 6.0% to 524,806 units, it maintained its top position. Daihatsu was followed by Toyota with 251,498 units, up 2.4%, and Mitsubishi with 154,359 units, up 0.8%.

From 2024 onward, many manufacturers, including Chinese ones, who have not previously produced locally, plan to start producing BEVs in Indonesia. Chinese manufacturers such as SAIC Motor, Great Wall Motor, BYD, and Hozon Auto are planning to launch factories within 2024, and Vietnam’s VinFast plans to start local operations in 2026.