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View all search resultsCar sales tumble in first half of 2025 as consumers rein in spending
Recovery continued to elude the four-wheel vehicle market in the January-June period amid ongoing weak consumer demand, with local multi-finance companies, which typically rely on car loans, posted modest year-on-year growth of 2.8 percent in May.
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Cars prepare to board a ferry on Jan. 2, 2025, at Merak Port in Cilegon, Banten. (Antara/Angga Budhiyanto)
T
he domestic four-wheel vehicle market showed no signs of recovery in the first half of 2025, with both wholesale and retail sales recording year-on-year (yoy) declines, reflecting continuing weakness in consumer demand.
According to data from the Association of Indonesian Automotive Manufacturers (Gaikindo), wholesale deliveries of new cars from factories to dealers reached 374,740 units between January and June, down 8.6 percent compared to the same period last year.
Retail sales, which measure purchases made by end consumers at dealerships, fell more sharply at 9.7 percent yoy to 390,467 units, down from 432,453 units in the first half of 2024.
Gaikindo chairman Jongkie Sugiarto said the persistent slowdown in sales was driven by a combination of factors including elevated interest rates, broader macroeconomic challenges and subdued consumer purchasing power.
“We hope automotive exhibitions such as the Gaikindo Indonesia International Auto Show [GIIAS] 2025, followed by Jakarta Auto Week and other regional auto shows, will help stimulate demand and boost overall sales,” Jongkie said, as quoted by Kompas.com.
GIIAS 2025 is set to run from July 24 to Aug. 3 while Jakarta Auto Week is slated take place in November, both in BSD City, Banten.
Last month’s sales figures further underscored weakness in the broader market.
