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Indonesian car industry sees sales fall 4% in 2023
Weaker economic growth and the central bank's rate hike contributed to a general downturn in car sales last year, Gaikindo said.
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New automobiles bound for export are parked on Dec. 15, 2023 at the car terminal of PT Indonesia Kendaraan Terminal at Tanjung Priok Port in North Jakarta. (Antara/Andika Wahyu)
T
he country’s automotive industry recorded a 4 percent year-on-year (yoy) decline in full-year car sales for 2023, due to weaker economic growth and high interest rates.
Domestic car wholesales reached 1 million units last year, down from 1.05 million units sold in 2022, according to data from the Association of Indonesian Automotive Manufacturers (Gaikindo).
“Indonesia’s economic growth slowed, particularly in the second half of last year, while [Bank Indonesia] interest rates saw another hike. This [contributed to] slower vehicle sales as well,” Gaikindo cochairman Jongkie D. Sugiarto said on Jan. 10, as quoted by Bisnis.com.
The economy is projected to grow at a rate of 5 percent in 2023, according to the World Bank, lower than the 5.3 percent growth recorded the previous year.
The World Bank also forecasts the Indonesian economy to grow 4.9 percent this year, with the slower rate continuing into 2025.
Diversified conglomerate Astra International, which has a domestic market share of over 56 percent, saw its car sales drop 2.3 percent yoy last year to 560,717 units, from 574,198 units in 2022.
“We hope that in 2024, the automotive industry can continue to make a positive contribution to Indonesia's economic growth,” Astra spokeman Boy Kelana Soebroto said in a statement on Sunday, as quoted by Bisnis.com.
