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Indonesian Vehicle Sales Plunge 18% in July 2025
16 Aug
Summary
- New vehicle sales in Indonesia fell 18% in July 2025
- Chinese EV brands like BYD, Chery, and SAIC-GM-Wuling see sales surge
- Bank Indonesia cuts rates to boost consumer spending, but market remains weak
According to the latest data, new vehicle sales in Indonesia declined by 18% to 60,552 units in July 2025, down from 74,230 in the same month last year. The Indonesian automotive market has been struggling, with sales falling 10% year-on-year in the first seven months of 2025 to 435,390 units.
The economic slowdown has dampened consumer sentiment, with fewer buyers committing to large purchases. However, the country's economy has shown signs of improvement, with growth accelerating to 5.1% year-on-year in the second quarter, up from 4.9% in the first quarter.
To help boost consumer spending, Bank Indonesia has cut its benchmark interest rate by 25 basis points four times in the last year, bringing it down to 5.25% from a peak of 6.25%. But these efforts have yet to translate into a significant recovery in the vehicle market.
One bright spot in the industry is the growing presence of Chinese automakers, which are driving up sales of battery electric vehicles (BEVs). BEV sales surged almost threefold to 44,094 units in the first seven months of 2025, with BYD and its Denza brand accounting for the largest share.
Overall, the Indonesian vehicle market remains under pressure, with sales of both light passenger vehicles and commercial vehicles declining by 10% in the first seven months of the year. Automakers will need to adapt to the changing market dynamics to regain momentum.
