Indonesia’s Automobile Production Declines 47% to 690,000 Units in 2020

Indonesia’s automobile production in 2020 fell to 690,000 units, down 46.5% from the previous year. Affected by the spread of the new coronavirus infection, the domestic market declined 48.5% to 532,000 units, and CBU exports dropped 30.1% to 232,000 units. As a result, automobile production almost halved compared to the previous year. In Indonesia, stricter screening of vehicle purchase loans was one of the factors that slowed down the recovery of the domestic new automobile market compared to other ASEAN countries. For this reason, automakers were forced to significantly cut production. Looking at the number of vehicles produced by model, passenger vehicles decreased 47.4% to 551,000 and commercial vehicles declined 42.7% to 139,000 units, resulting in a drop of more than 30% of nearly all vehicle types. LCGC policy-compliant vehicles fell 49.2% to 124,000 units, while sales of non-sedans (4x2) (2WD models such as hatchbacks, SUVs and MPVs) fell 47.7% to 391,000 vehicles. In the commercial vehicle sector, pickup trucks / trucks decreased 42.7% to 137,000 units.