Indonesian Vehicles Market in 2025 is slumping. Full-year sales fell by 7%, with leaders Toyota and Daihatsu falling in double-digit. BYD and Chery expanded despite the stagnation, while also securing top spots in EV sector.
Economic Environment
In 2025, Indonesia’s economy is forecast to grow by about 5.0%, supported by low inflation projected at 1.9%, and easing financial conditions that will lift consumption and investment. Growth is expected to remain stable at 5.0% in 2026 and edge up to 5.1% in 2027, even as slowing exports and rising global trade frictions weigh on external demand. Inflation is set to rise gradually to around 3.1–3.2% by 2026–27 as energy prices normalise and currency depreciation feeds into domestic prices.
Monetary policy is likely to ease further, with room for around 50 basis points of additional cuts as inflation stays within the target band. Fiscal policy will be moderately expansionary, driven by higher spending on free meal programmes, subsidies, and the launch of a new sovereign wealth fund, although offsetting spending cuts will keep deficits below the 3% statutory cap.
Automotive Industry Trend and Outlook
A fragile economic outlook impacted the Indonesian vehicle market in 2025. After falling continuously throughout the whole year, overall sales amounted to 804,202 units, down by 7%.
Band-wise, the leader was still Toyota with a 31.3% share (-13.4%), followed by Daihatsu with a 16.2% share (-19.8%), Mitsubishi -up 1 spot- (-0.5%) and Suzuki -up 1 spot- (-0.7%).
Honda -down 2 spots- ranked in 5th (-40.4%), followed by BYD -up 5 spots- in 6th (+202.7%). Mitsubishi Fuso fell 1 spot into 7th (-9%), followed by Isuzu -down 1 spot- in 8th (-4.8%), Chery -up 3 spots- in 9th (+111%) and Hyundai -down 1 spot- in 10th (-15%).
Looking at specific models, reported in the dedicated article, the Toyota Kijang was still the best seller despite losing 6.4%. The Daihatsu Gran Max PU followed in 2nd climbing 3 spots (-6.4%).
EV Market Trend and Outlook
Aggressive policy support EVs through the headwinds in Indonesia, with full-year sales growing 118.6% in 2025. Reaching a 10% share, the country has now reached annual EV production capacity around 59,921 units, with major players, notably BYD and Chery, ramping up output.
BYD was still the new leader, rising 53.6% while securing 30.7% of the market. Chery surged 5 spots in 2nd, growing 1806.5% while Wuling fell from 2nd into 3rd (-16.1%).
Medium-Term Market Trend
Starting in 2014, the Indonesian vehicle market fluctuated between 1 million and 1.2 million units as it approached saturation following the rapid expansion of the early 2010s.
A natural 5% decline in 2019 followed this growth phase, but the arrival of COVID-19 in 2020 led to a sharp downturn. The market plummeted to 582,730 units due to factory shutdowns and distribution disruptions.
In 2022, sales rebounded by 21.4%, driven by government stimulus packages and the fulfillment of delayed purchases from the pandemic. However, in 2023, the market declined by 4.1%, and in 2024, it fell below 1 million units again, down 14%. Contributing factors to this drop included ongoing supply chain disruptions, particularly semiconductor shortages.
Meanwhile, the electric vehicle segment experienced remarkable growth, fueled by the expansion of Chinese brands in Indonesia. Thanks to government incentives such as the VAT reduction policy, EV sales surged by 113.4% in 2024.
Tables with sales figures
In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 Models.
