Indonesian vehicle sales fall 18% in July

New vehicle sales in Indonesia declined by 18% to 60,552 units in July 2025, down from 74,230 in the same month last year, according to wholesale data compiled by the local automotive industry association Gaikindo.

Market sentiment has weakened significantly in the last year, with fewer consumers committing to large purchases. Economic growth accelerated to 5.1% year-on-year in the second quarter, up from a downwardly revised 4.9% in the first quarter, due mainly to stronger investment activity and exports. Bank Indonesia has cut its benchmark interest rate by 25 basis points four times in the last year, to 5.25% from a peak of 6.25%, to help strengthen consumer spending.

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In the first seven months of 2025, the vehicle market shrank by 10% year-on-year to 435,390 units after declining by 17% to 484,250 units in the same period last year, with sales of light passenger vehicles and commercial vehicles both falling by 10% to 376,229 units and 108,007 units, respectively.

Toyota’s seven-month sales declined by 9% to 142,751 units, with volumes supported by popular models such as the recently-launched Hilux Rangga and the Innova MPV; while Daihatsu sales dropped by 25% to 74,856 units; Honda 37,916 units (-30%); Mitsubishi 36,092 units (-14%); and Suzuki 33,190 units (-14%).

Japanese automakers are coming under increased pressure in this market from the growing presence of Chinese brands, which are driving up sales of battery electric vehicles (BEVs). BEV sales surged almost threefold to 44,094 units in the first seven months of the year, with BYD and its Denza brand combined accounting for 22,683 units, followed by Chery/Omoda with 8,672 units and SAIC-GM-Wuling with 6,210 units.

Overall vehicle production in the country fell by almost 2% to 658,821 units year-to-date, while exports of fully-assembled vehicles increased by 10% to 284,285 units.

"Indonesian vehicle sales fall 18% in July" was originally created and published by Just Auto, a GlobalData owned brand.

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