Indonesia’s vehicle sales for 2024 were able to hit the adjusted targets set by the Indonesian Automobile Manufacturers Association (GAIKINDO). Earlier in November 2024, GAIKINDO readjusted its sales targets from 1.1 million units to 850,000 units. Overall sales for the year 2024 amounted to 865,723 units sold.
Though they have hit their targets, December 2024 showed a 13.9 per cent decline on year. Sales figures report only 79,806 units sold, a 6.4 per cent decrease from December 2023.
JAPANESE CARS REMAIN ON TOP
Much like before, Indonesia’s best-selling cars of December 2024 are dominated by Japanese legacy brands. The 20 best-selling models for 2024 were all from Japanese carmakers. Toyota, Daihatsu, Honda, Mitsubishi, Suzuki, Isuzu, and Hino make up 7 of the top 10 brands in market share. Hyundai, Wuling, and BYD trail behind in the remaining top 10.
Toyota is still Indonesia’s number one automaker, acquiring 33.4 per cent of the market share with 26,667 units sold. From the entirety of 2024, Toyota sold a total of 288,982 units. Compared to 2023, Toyota saw a 16.8 per cent decrease in monthly sales and a 14.2 per cent decrease in annual sales. Furthermore, according to GAIKINDO, the Toyota Innova was Indonesia’s best-selling car of 2024, followed by the Avanza.
Following Toyota is Daihatsu, with 13,057 units sold and 16.4 per cent market share. Overall, the company has sold 163,032 vehicles for the year 2024. Daihatsu’s performance increased by 2 per cent compared to December 2023 but declined by 13.3 per cent when comparing annual performance. Daihatsu’s Sigra is the third best-selling car after the Innova and Avanza.
With 10.5 per cent market share, Honda comes in third. The automaker sold 8,392 units for December 2024, only a slight decrease in performance of 0.4 per cent on year. Mitsubishi and Suzuki sold 6,722 and 6,474 units respectively in December. While Isuzu, Mitsubishi Fuso, and Isuzu sold around 2,000 units each.
Chinese brand Chery saw the biggest improvement with a 403.1 per cent increase on year. The company sold 1,449 units for the month of December alone and 9,191 units for the whole year. Meanwhile, Kia’s sales declined the most on year by 87 per cent. The Korean car brand sold only 18 units for December and 1,050 units for the year 2024.
GAIKINDO’S 2025 PREDICTIONS
GAIKINDO Chairman Jongkie Sugiarto maintained that the association has not yet finalised its projections for the year but hopes that sales will “go back to normal.” The association is wary about the government’s recent tax implementations. According to GAIKINDO, these recent changes may challenge the current automotive sector and its sales performance.
“We have not decided on the 2025 projection, considering that there are still plans for several tax increases that could be obstacles. But we hope that this year we can return to normal numbers,” said Sugiarto, last January 8, 2025.
Though the government recently announced tax incentives for car makers and a 1 per cent increase in VAT, GAIKINDO’s concern lies in regional taxation. Through the Motor Vehicle Tax (PKB), Motor Vehicle Transfer Fee (BBKBN), and Non-Metallic Mineral and Rock Tax, it is possible for regional government units to levy additional taxation.
“The additional burden is quite large, especially for low-end cars. If possible, there should be no additional tax costs that make car prices more expensive,” Sugiarto explained.
Despite this, GAIKINDO hopes that sales in 2025 will at least amount to 1,000,000 units sold. The country’s car sales performance in 2023 was marginally higher than 2024 with 1,005,802 units sold.
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