New vehicle sales in Indonesia continued to decline in August 2025, by 19% to 61,780 units from 76,302 in the same month last year, according to wholesale data compiled by the local automotive industry association Gaikindo.

Market sentiment has weakened significantly in the last year, with fewer consumers committing to large purchases. Economic growth accelerated to 5.1% year-on-year in the second quarter, up from a downwardly revised 4.9% in the first quarter, due mainly to stronger investment activity and exports. Bank Indonesia cut its benchmark interest rate by 25 basis points for the fifth time in August, to 5.00% from a peak of 6.25% just a year earlier, to help strengthen consumer spending.

In the first eight months of 2025, the vehicle market shrank by 11% year-on-year to 500,951 units after declining by 17% to 560,552 units in the same period last year, with sales of light passenger vehicles falling by 11% to 387,110 units, while commercial vehicle sales declined by 9% to 113,841 units.

Toyota’s sales declined by 12% to 161,079 units year-to-date, while Daihatsu’s sales dropped by 25% to 84,702 units; Mitsubishi 42,873 units (-11%); Honda 42,291 units (-31%); and Suzuki 39,101 units (-11%).

Japanese automakers are coming under increased pressure in this market from the growing presence of Chinese brands, which are mostly behind the sharp rise in battery electric vehicles (BEVs) sales in the last two years. BEV sales surged threefold to 53,100 units in the first eight months of 2025, with BYD and its Denza brand accounting for 25,537 units combined, followed by Chery/Omoda with 9,193 units and SAIC-GM-Wuling with 7,319 units.

Overall vehicle production in the country fell by over 3% to 757,220 units year-to-date, underpinned by a 12% rise in exports of fully-assembled vehicles to 335,063 units.

"Indonesian vehicle sales fall 19% in August" was originally created and published by Just Auto, a GlobalData owned brand.

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