Car sales have already plummeted in the first quarter of 2025. Just three months into the year, the number of vehicles delivered from factories to dealers has dropped by 4.7 percent compared to the same period last year.
According to data from the Association of Indonesia Automotive Industries (Gaikindo), a total of 205,160 units were distributed between January and March 2025. With this decline, Gaikindo has chosen not to set overly ambitious targets for the rest of the year.
“Our target remains the same—900,000 units, just like in 2024. As of the first quarter of 2025, sales are down around 4.8 percent. We’re keeping expectations realistic; if we can match last year’s performance, that would already be a great achievement,” said Gaikindo Chairman Yohannes Nangoi during a press conference in Jakarta on Wednesday (April 16, 2025).
Amid a sluggish market, the fact that car sales have already plummeted is being attributed to several contributing factors. Nangoi explained that current global and domestic economic conditions remain uncertain, prompting consumers to prioritize essential needs over purchasing new vehicles.
“To be honest, the market is quite tough right now. The US Dollar has strengthened significantly, and I’m concerned that if this continues, car prices may rise as well. Meanwhile, consumer purchasing power and buying interest are still weak,” Nangoi said.
He also noted that the strengthening of the US Dollar has led to a decline in the value of the Rupiah and several other currencies, which in turn has affected the public’s overall economic confidence.
Even so, Gaikindo remains cautiously optimistic. The entry of new automotive brands and affordable models could help revitalize the market, signaling that there’s still potential in Indonesia’s auto industry.
“The good news is we’re seeing more affordable new models entering the market. Hopefully, that can help turn things around by the end of the year,” he added.
Still, there’s no denying that car sales have already plummeted, even before mid-year—sending a clear message to industry players to tread carefully and stay in tune with consumer trends.
