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Auto sales remain weak in May as demand softens
Automakers are hoping for an uptick in sales from the upcoming GIIAS as both factory shipments and retail sales remained weak in May, declining by double digits year-on-year as slowing economic growth continued to weigh on demand.
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Cars crawl in bumper-to-bumper traffic on June 19, 2024, along Jl. Gatot Subroto in South Jakarta. (Antara/Muhammad Adimaja)
C
ar sales remained weak in May as slowing economic growth continued to weigh on demand, with both factory shipments and retail purchases recording a double-digit decline compared to a year earlier.
Wholesales shipping from factories to dealers declined 16.1 percent year-on-year (yoy) to 60,613 units in May, down from 71,391 in the same month last year, according to monthly figures released by the Association of Indonesian Automotive Manufacturers (Gaikindo).
Retail sales, which reflect direct consumer purchases, also posted a steep drop, falling 15.1 percent yoy to 61,339 units from 73,246 sold in May 2024.
Gaikindo chairman Jongkie Sugiarto said weakening household purchasing power was the key reason behind the slump in auto sales, as economic conditions had yet to show meaningful improvement.
“Purchasing power remains very weak, and economic growth has not picked up,” Jongkie said on Monday, as quoted by Bisnis.com.
Read also: March car sales skid despite festive season, holiday bonuses
The economy expanded 4.87 percent yoy in the first quarter of 2025, according to data from Statistics Indonesia (BPS), while household consumption expenditure grew only 4.89 percent yoy and government expenditure contracted 1.38 percent yoy.
