Indonesia’s car sales are down again for the month of October in 2024. The Association of Indonesian Automotive Industries (GAIKINDO) previously cut yearly targets down by 25 per cent, from 1.1 million to 850,000 units.
SALES STATISTICS
Throughout 2024, Indonesia’s car market has consistently seen decline in sales. Its overall sales figure for October is 77,191 units, 3.9 per cent lower compared to the same month last year. Its overall sales figure for the period amounts to 710,406 units, a staggering 15 per cent down on year-on-year (YoY).
Despite declining sales, Toyota remains at the top of Indonesia’s car market with 35 per cent market share. The brand experienced a 1.5 per cent decline in YoY with 27,030 units sold. For the period of January – October in 2024, Toyota sold a total of 235,331 vehicles. Daihatsu remains largely the same compared to October last year, with 18.3 per cent market share and 14,096 cars sold.
Other prominent Japanese brands like Honda, Suzuki, and Mitsubishi all saw decrease in sales performance. Honda was down by 27 per cent this October, while Suzuki and Mitsubishi showed similar downturns at 8.8 and 8.3 per cent respectively. Despite this, Japanese car brands remain dominant in Indonesia’s car market.
MG showed the largest improvement in YoY comparison, seconded by Chery. MG’s sales and market share increased by 305 per cent, selling 227 units in October. Chery’s performance improved with a 95.3 per cent increase and 699 units sold.
MINI and Hyundai’s performances declined significantly. MINI sold only 49 vehicles and was down by 46.2 per cent. Hyundai, on the other hand, sold 1,711 cars but its performance was down by 43.6 per cent.
GAIKINDO’S EFFORTS
Indonesia’s car sales continued to go down despite goal-cutting efforts by GAIKINDO. Earlier this year, the association pledged to “ban the sale of new cars with fuel engines” in 2045. To be specific, Indonesia wants a total shift to zero-emission vehicles by that year, not just the elimination of combustion engines. According to a press release, GAIKINDO will continue to support brand holder agents (APM) who have captured Indonesia’s combustion vehicle market.
Though the government will continue to support investments into ICE brands, it plans to gradually shift its support to electric vehicles. Rachmat Kaimuddin, Deputy for Infrastructure and Transportation Coordination of the Coordinating Ministry for Maritime Affairs and Investment, said that the government is in the process of drafting their ICE vehicle regulation ban.
“The context is like this, because Indonesia has a net zero emission target in 2060 or sooner, meaning that at some point we must start to stop selling emission vehicles. Usually that is 15 years before the net zero target,” Kaimuddin said.
Indonesia may need to tighten its regulations and laws regarding their emission vehicles. Currently, there are not yet any effective laws on such.
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