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Must ‘find ways to reignite interest’ in buying cars, minister says
Last year's decline marked the second consecutive annual drop in car sales since the 2022 peak.
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Industry Minister Agus Gumiwang Kartasasmita speaks to reporters on Jan. 7, 2025, at the Industry Ministry building in Jakarta. (JP/Ruth Dea Juwita)
T
he government is considering additional policies to prevent a further downturn in the automotive sector amid declining car sales, Industry Minister Agus Gumiwang Kartasasmita said.
“We can see that people are holding back on car purchases. Nationwide auto sales dropped last year compared to 2023, and the government is preparing policies to address this,” Agus told reporters on Thursday after opening the Indonesia International Motor Show (IIMS) 2025.
Last year's decline marked the second consecutive annual drop in car sales since a peak reached in 2022.
Automobile sales in Indonesia fell 13.9 percent in 2024, dropping from just over 1 million units sold in 2023, according to the Indonesian Automotive Manufacturers Association (Gaikindo).
Read also: Car sales plunge 14 percent in 2024 as EVs gain ground
The weak trend carried on into 2025, with the wholesale figure, or the number of cars sold from factories to dealers, sliding 11.3 percent year-on-year (yoy) to 61,843 units in January.
Retail sales, reflecting direct consumer purchases, slumped even further, dropping 18.6 percent yoy to 63,858 units in the same month.
