Indonesian Vehicles Market in 2025 keeps spiraling downward. YTD sales up to October dropped by 10.5%, with BYD and Chery being the only brands in the top 10 to defy the contraction and grow in triple digits.
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. YTD sales up to October contracted by 10.5% totalling 635,850 units.
Band-wise, the leader was still Toyota with a 31.8% share (-14%), followed by Daihatsu with a 16.8% share (-23.5%), Mitsubishi -up 1 spot- (-5.2%) and Honda -down 1 spot- (-35.5%).
Suzuki ranked in 5th (-8.6%), followed by BYD -up 5 spots- in 6th (+178.2%).
Mitsubishi Fuso -down 1 spot- ranked in 7th (-9.9%), in front of Isuzu -down 1 spot- in 8th (-9.3%), Chery -up 3 spots- in 9th (+142.7%) and Hyundai -down 1 spot- closing the Top 10 (-12.1%).
Looking at specific models, reported in the dedicated article, the Toyota Kijang was still the best seller despite losing 7.1%. The Daihatsu Gran Max PU followed in 2nd climbing 3 spots.
EV Market Trend and Outlook
Aggressive policy supports EV growth in Indonesia, with YTD sales growing 108.5% up to October 2025. Reaching a 9% share, the country has now reached annual EV production capacity around 280,000 units, with major players, notably BYD and Chery, ramping up output.
BYD became the new leader, rising 89.1% while securing 38% of the market. Wuling on the other hand lost leadership and fell 7.5% into 2nd, followed by Denza which surged 13 spots into 3rd.
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.
