Indonesia’s car sales increased by 2.2% year-on-year in February, marking the first growth since June 2023, according to data from the country’s car association. This uptick is attributed to the growing adoption of electric vehicles (EVs), particularly those from Chinese manufacturers.
The automotive market in Southeast Asia’s largest economy had been facing challenges due to weakened consumer spending and a tendency to postpone car purchases during the national elections last year, as noted by association officials. However, more affordable EV options and improving economic conditions have contributed to the recent sales growth.
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“More affordable choices in EVs were seen as a key driver of growth alongside better economic conditions,” said Jongkie D. Sugiarto, co-chairman of the Indonesian Automotive Industry Association (Gaikindo).
In February, 72,295 units were sold to dealers, up from 70,772 units in the same month last year. Chinese brands BYD and Chery Automobile recorded the highest annual sales growth during this period. BYD, which began selling its cars in Indonesia last June, held approximately 36% of the market share in battery-based … .
Despite the surge in EV sales, Japanese carmakers such as Toyota, … , and Mitsubishi Motors continue to dominate Indonesia’s car market. Gaikindo forecasts car sales to reach 900,000 units this year, slightly higher than the 865,723 units sold in 2024.
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Car sales are among the economic … . The Indonesian government’s incentives for EV carmakers and the entry of various Chinese EV brands have played significant roles in this market shift.
The data indicates a positive trend in Indonesia’s automotive industry, with EV adoption contributing notably to the recent growth in car sales.