Indonesian vehicle sales will decline by 15% in May
Indonesia’s new car sales fell 15% in May 2025, down 60,613 units, according to wholesale data compiled by the local automotive industry association Gaikindo.
Last month, the market fell from an already odd annual volume when sales fell 13% from the peak levels after the previous year. Market sentiment has weakened significantly last year as fewer consumers commit to large-scale purchases, but businesses face increasing uncertainty about international trade following the recent US import tariff hike.
Latest government data shows GDP growth was slightly slower in the first quarter of 2025 compared to 5.0% growth in the last quarter. Bank Indonesia cut its benchmark interest rate in May to 5.50%. This is the third 25 reference point since last year’s peak at 6.25%.
Gaikindo vice president Jongkie Sugiarto told local reporters:
In the first five months of 2025, the vehicle market shrunk by 5.5% year-on-year after a 21% increase to 21% in the same period last year to 335,405 units.
Toyota’s sales have helped to strong demand for models such as the recently launched Hilux Rangga and Innova MPV, but other Japanese automakers are under strong pressure from the presence of Chinese brands that are increasing demand for domestic battery-electric vehicles (BEVs). Daihatsu sales plummeted from 22% to 55,049 units. Honda with 28,502 units (-29%) continues. Mitsubishi 26028 units (-13%); Suzuki 22,240 units (-22%).
Sales of battery electric vehicles (BEVs) almost tripled to 30,152 units in the first five months of the year, followed by SAIC-GM-Wuling 4,735 units and Chere/Omoda, combining a total of 15,978 units for BYD and its Denza brand, with 4,735 units and 4,081 units.
Overall domestic vehicle production fell 1.4% from the start of the year, down 466,290 units, while fully assembled vehicles exports rose by more than 7% to 192,501 units.
“Indonesia vehicle sales will decrease by 15% in May” was originally created and published Just automatica brand owned by GlobalData.
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