Indonesia’s 2025 Automobile Sales by Segment

Indonesia’s new vehicle sales in 2025 fell 7.2% year-on-year to 804,000 units, marking the third consecutive annual decline. However, the market has shown signs of bottoming out in 2026, with January–March sales recovering by 1.7% year-on-year to 209,000 units. The sluggish sales over the past two years are attributed to a decline in disposable income among the middle-class, driven by pandemic-related job losses in 2020. This shift caused buyers—including first-time entry-level shoppers—to opt for used cars instead of new ones, a trend further exacerbated by stubbornly high auto loan interest rates. Currently, the new car market is centered around demand from upper-middle-class individuals, wealthy buyers, and corporate fleets, with their vehicle replacements and fleet expansions supporting the market.