Indonesian Car Sales in 2024 Fall Short of 1 Million Units

January 9, 2025

The Indonesian Automotive Industry Association (Gaikindo) released the car sales data for 2024. The results are disappointing, as the initial target of 1,1 million units was not achieved. Although the revised target of 850,000 units was surpassed, the final numbers are still far from what the industry had hoped for.

The data reveals wholesales (distribution from factories to dealers) reached only 865,723 units, while retail (dealer-to-consumer deliveries) amounted to 889,680 units. This represents a sharp 14.2 percent decline compared to 2023 when wholesales totaled 1,005,802 units and retail reached 998,059 units.

Toyota remains the market leader but with a significant decline in wholesales, which only reached 288,982 units compared to 339,292 units in 2023. Daihatsu and Honda hold the second and third spots, but their contributions to the market also reflect a sluggish industry.

Meanwhile, Chinese brand BYD has begun to establish a presence, with wholesales reaching 15,429 units. Although promising, their presence has yet to shift the market dynamics in a meaningful way.

Gaikindo’s chairman, Jongkie Sugiarto, remains optimistic for 2025, despite challenges such as the 12 percent Value Added Tax (VAT) increase and stagnant consumer purchasing power. “The VAT increase is nothing new, but we hope it won’t have a significant impact on the industry,” he said on Monday (6/1).

The government is trying to revive market interest with fiscal incentives of 3 percent for hybrid vehicles (HEV) and support for battery electric vehicles (BEV). However, the effectiveness of these policies remains uncertain, as the market share for environmentally friendly vehicles only reached 11.6 percent in 2024.

The automotive expert from the Bandung Institute of Technology (ITB), Yannes Martinus Pasaribu, reminds us that government actions alone are insufficient. He believes Gaikindo must be more active in promoting the benefits of environmentally friendly vehicles and ensure that HEV and BEV models are more affordable for consumers.

“If strategic measures are not implemented quickly, the automotive industry could face further decline, especially with increasing costs due to regional regulations such as variable PKB and BBNKB fees,” Yannes emphasized.

The list of best-selling brands in 2024 reflects the dominance of major brands like Toyota and Daihatsu, but the numbers also highlight a market that is becoming increasingly challenging, requiring more aggressive strategies to return to growth in 2025.