Jakarta. Indonesia’s automotive industry continues to face sluggish demand and reduced public spending, with wholesale car sales plunging by 15.1 percent year‑on‑year in May.

The sharp fall underscores the ongoing challenges in consumer sentiment and affordability. Rising costs -- fuel, financing, luxury taxes -- combined with modest income growth, may pressure sales further without structural policy changes.

According to data from the Association of Indonesian Automotive Manufacturers (Gaikindo), wholesale shipments from manufacturers to dealers dropped to 60,613 units in May 2025, down from 71,391 units in May 2024. Retail sales -- from dealerships to consumers -- also slid by 15.1 percent YoY, totaling 61,339 units..

“Weaker purchasing power for new cars has become the main cause of the ongoing decline in auto sales,” said Gaikindo Deputy Chairman Jongkie Sugiarto on Wednesday.

From January through May, wholesale car deliveries decreased 5.5 percent YoY, falling from 335,405 units to 316,981 units, while retail sales saw a steeper decline of 9.2 percent, dropping from 362,163 to 328,852.

Market Leadership (Jan–May 2025):

• Toyota: 68,955 units
• Daihatsu: 34,999
• Honda: 22,336
• Mitsubishi: 17,481
• Suzuki: 14,714
• Hyundai: 6,958
• BYD: 5,718
• Wuling: 4,795
• Chery: 4,399
• Denza: 2,524

Analysts point to a growing gap between rising car prices and middle-class income growth. New car prices have increased by an average of 7.5 percent per year, while middle-class incomes have only grown by about 3-3.5 percent annually, dampening consumers' ability to afford new vehicles.

The surge of Chinese carmakers to Indonesia’s top ten car producers indicates a market transformation, with electric vehicles partially offsetting losses in conventional segments.

Last year, EV wholesales surged by 153 percent to 43,188 units while hybrid vehicles wholesales reached 59,903 units, together accounting for roughly 12 percent of total sales.
 

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