Indonesia’s Automobile Market in 2025

In Indonesia, 2025 automobile sales (on a wholesale basis) fell 7.2% year-on-year to 804,000 units, staying below the 1-million mark for the second consecutive year. In addition to structural issues such as the declining purchasing power and shrinking size of the middle class—the primary buyers of new cars—tightened auto loan screening is believed to have cooled demand. Monthly sales showed that nine months saw year-on-year declines, with six of those months recording double-digit drops. On the other hand, the fourth quarter saw last-minute demand ahead of the year-end expiration of tax incentives for BEVs; consequently, the year-on-year declines in October and November were limited to single digits, and December saw an increase. GAIKINDO, the local automobile manufacturers association, anticipates that demand will bottom out due to the introduction of new models and has set a sales target of 850,000 units for 2026.