New vehicle sales in Indonesia declined by 6% to 79,806 units in December 2024 from 85,284 units a year earlier, according to wholesale data compiled by the local automotive industry association Gaikindo. Last month's sales came up against already weak year-earlier volumes, after the strong rebound from the pandemic lows had fizzled out last year.
Market sentiment has weakened significantly this year, with fewer consumers committing to large purchases. Economic growth slowed just slightly to 4.95% year-on-year in the third quarter, compared with 5.05% in the previous quarter, underpinned by strong exports, higher government spending and fixed investment, while private consumption remained unchanged. Bank Indonesia left its benchmark interest rate unchanged at 6.0% in December, after a 25 basis-point cut in October – the first cut since it began hiking in October 2023.
The Indonesian vehicle market declined by 14% to 865,723 units last year from 1,005,802 units in 2023, with sales of passenger vehicles declining by 14% to 672,986 units while commercial vehicle sales fell by 15% to 192,737 units.
Toyota's sales declined by 14% to 288,982 units last year; followed by Daihatsu with a 13% drop to 163,032 units; Honda with 94,742 units (-32%); Mitsubishi 72,217 units (-7%); and Suzuki 66,809 units (-18%).
Overall vehicle production in the country fell by 14% to 1,196,664 units in 2024, while exports of fully-assembled vehicles dropped by 7% to 472,194 units.
Sales of battery electric vehicles (BEVs) surged more than threefold to 43,854 units in 2024, most of which were Chinese models. BYD led this segment last year with 15,429 sales, despite having entered the market only in June, followed by Wuling with 13,117 units. Other key players include Chery with 4,814 sales, SAIC-MG with 3,194 units and Hyundai with 2,800 units.
Hyundai began selling its locally-produced Kona Electric small SUV last July, powered by batteries produced at its local joint venture plant with LG Energy Solution, while China's Hozon Auto began local assembly of its Neta X in August. BYD confirmed it plans to launch local BEV production in 2026, while Xpeng said it plans to launch sales operations in the country this year.
Source: https://www.just-auto.com/news/indonesian-vehicle-sales-fall-6-in-december