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Vehicle sales in Indonesia dropped by 5 per cent in March 2025, according to the local automotive group Gaikindo. A total of 70,892 new vehicles were sold, down from 74,720 units in March 2024. 

March 2024 had seen a 24 per cent drop from earlier post-pandemic highs. Now, with fewer people willing to make big purchases and global trade worries growing, the market continues to struggle. 

“Market sentiment has weakened significantly in the last year, with fewer consumers committing to large purchases,” the Gaikindo stated. 

The government has tried to help. Bank Indonesia cut its interest rate to 5.75 per cent, with the latest 0.25 per cent cut made in January 2025. This move was meant to balance the VAT rate increase from 11 per cent to 12 per cent at the start of the year. But the falling value of the rupiah means more cuts are not expected anytime soon. 

Looking at the first three months of 2025, Indonesia’s vehicle market dropped by 4.6 per cent. Only 205,160 vehicles were sold, compared to 215,069 during the same time last year. Passenger vehicle sales fell by 5 per cent to 162,388 units, while commercial vehicle sales dropped 4 per cent to 42,772 units. 

Toyota Stays Strong as Other Brands Struggle 

Not all brands were affected equally. Toyota managed to grow its sales by 5 per cent to 68,955 units, thanks to strong demand for its Hilux Rangga and Innova MPV models. In contrast, Daihatsu saw a 24 per cent drop in sales to 34,999 units.  

Honda also declined by 20 per cent, selling 22,336 units. Mitsubishi fell by 8 per cent with 17,481 units sold, and Suzuki dropped by 20 per cent to 14,174 units. Japanese brands are now facing stiff competition from Chinese carmakers, especially those offering battery electric vehicles (BEVs). 

Sales of BEVs in Indonesia almost tripled in the first quarter of 2025. A total of 16,770 electric vehicles were sold. BYD led the market with 5,718 units, followed by SAIC-GM-Wuling with 2,806 units and Chery with 2,520 units. These figures show that interest in electric cars is growing quickly in the country. 

Car production in Indonesia also fell slightly, by just over 2 per cent, to 288,012 units in the first quarter. However, exports of fully-assembled vehicles increased by 2 per cent, reaching 110,133 units. 

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