JAKARTA, March 11 (Reuters) – Indonesia’s car sales in February experienced a 2.2% year-on-year increase, according to data released Tuesday by the country’s car association. This marks the first period of growth since June 2023, driven primarily by the rising popularity of electric vehicles (EVs), particularly those from Chinese brands.
Car sales in Southeast Asia’s largest economy have faced headwinds due to consumer spending challenges and a tendency to delay purchases during last year’s national elections, industry officials have noted.
Jongkie D. Sugiarto, co-chairman of the Indonesian Automotive Industry Association (Gaikindo), told Reuters that the availability of more affordable EVs, combined with improved economic conditions, were key drivers of the recent growth. Analysts closely monitor car sales as an economic indicator to gauge household consumption in the G20 economy.
Several Chinese EV brands have entered the Indonesian market in recent years, spurred by Jakarta’s incentives for EV manufacturers investing in the country.
Data indicates that companies sold 72,295 units to dealers in February, compared to 70,772 units the previous year. Among those with the highest annual sales growth were Chinese brands BYD and Chery Automobile.
BYD, which has been expanding its presence in Southeast Asia, commenced sales in Indonesia last June. As of November 2024, the company held approximately 36% of the market share in battery-based EV sales.
Despite the growth in EV sales, Japanese carmakers such as Toyota, Daihatsu, Honda, and Mitsubishi Motors still hold the dominant position in Indonesia’s car market.
Gaikindo anticipates car sales to reach 900,000 units this year, slightly surpassing the 865,723 units sold in 2024.
(1 = 16,405.0000 rupiah)
