Indonesian car sales may fall to 800,000 units this year

Automotive industry analysts predict that Indonesia's car sales could fall below 800,000 units in 2025 if related issues are not resolved in a timely manner, unless macroeconomic growth picks up significantly in the second half of the year.July 2025 automotive factory-to-distributor wholesale volume was 60,552 units, up 4.81 TP3T from the prior year (57,799 units in June) but down 18.41 TP3T from the year-ago period (74,230 units in July 2024).July 2025 retail volume was 62,770 units, up 1.81 TP3T from the prior year and down 171 TP3T from the year-ago period (2024 July was 75,588 units).Cumulative wholesale volume from January to July 2025 was 435,390 units, down 10.11 TP3T YoY.Wholesale volume in 2024 was 865,723 units, down 13.91 TP3T YoY (100,5802 units in 2023), while retail volume was 889,680 units, down 10.91 TP3T YoY.The Indonesia International Auto Show 2025 ( GIIAS 2025) attracted nearly 500,000 visitors, a positive but limited boost to the market in July. In addition the continuous decline in purchasing power and economic pressure since 2024 also affects the sales of Indonesia's automotive market. The situation requires the government, industry players and financial institutions to take measures together, including boosting economic growth to enhance purchasing power, stabilizing car prices that have risen by 7% annually, accelerating the implementation of incentives, and relaxing local taxes.