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Economic Conditions Cause Drop in Commercial Vehicle Sales

The Jakarta Globe
August 5, 2025 | 9:44 am
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Mitsubishi Fuso's booth at the 2025 Gaikindo Indonesia International Auto Show (GIIAS) exhibition at ICE BSD, Tangerang. This event will run from July 24 to August 3, 2025. (Beritasatu.com/Herman)
Mitsubishi Fuso's booth at the 2025 Gaikindo Indonesia International Auto Show (GIIAS) exhibition at ICE BSD, Tangerang. This event will run from July 24 to August 3, 2025. (Beritasatu.com/Herman)

Jakarta. Indonesian Automotive Industry Association Gaikindo recently reported a decline in commercial vehicle sales, including trucks -- a drop that the group attributed to the current economic conditions.

Gaikindo's Secretary-General Kukuh Kumara said Monday that the fluctuations in commercial vehicle sales were closely related to national project activities.

"Commercial vehicles depend on existing projects. If the economy recovers, commodities rise, mining increases, [vehicle sales] usually continues [to grow]," Kukuh said.

Gaikindo also considers that the government policies are pivotal to fostering economic growth and investment climate. The association is now keeping its fingers crossed for the economy to improve by the second half of 2025. Kukuh said such improvements would become a boon to automotive sales, including on commercial vehicles.

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"We need to have pro-investor policies. Ones that provide long-term guatantees, and are sustainable," Kukuh said.

He also talked of the so-called price war in the national automotive industry -- a phenomenon that sees Chinese automakers selling their products at discounted prices. Kukuh said there was nothing strange about seeing price wars as such things were bound to happen in a competitive industry like automotives.

"Price wars are the result of a long process. For instance, the technology [used in the vehicles]. This technology is driven by comprehensive research and development," Kukuh said.

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