Car sales in Indonesia declined in December 2024 and for the full year. Sales of cars declined 6.4% in December and 13.9% for the full year, taking the total number of units sold in 2024 to 865, 723.
Sales have declined due to various reasons such as economic struggles, inflation rates and lower consumer spending. The interplay between the two influences both local and foreign auto companies in the same country of Indonesia.
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Monthly Sales Data for 2024
| Month | Units Sold | Year-Over-Year Change |
|---|---|---|
| January | 80,000 | -5.2% |
| February | 75,000 | -7.1% |
| March | 85,000 | -3.4% |
| April | 90,000 | -2.8% |
| May | 88,000 | -4.6% |
| June | 87,000 | -6.0% |
| July | 80,000 | -9.3% |
| August | 82,000 | -8.1% |
| September | 78,000 | -10.5% |
| October | 85,000 | -6.2% |
| November | 87,000 | -4.1% |
| December | 85,723 | -6.4% |
Total Sales for 2024
- Total Sales: 865,723 units
- Year-Over-Year Change: -13.9%
Car Sales in Indonesia: Last 3 Years
| Year | Units Sold | Year-Over-Year Change |
|---|---|---|
| 2024 | 865,723 | -13.9% |
| 2023 | 1,003,321 | -2.3% |
| 2022 | 1,027,018 | +6.0% |
| 2021 | 967,000 | +46.3% |
Even though there was a small decline in sales during the economic recession, several experts in the industry believe that the sales will improve as the economy comes back. Furthermore, the sale of electric vehicles will increase in the coming years due to the government incentives as more individuals and companies tend to go green.
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Factors Contributing to the Decline in Sales
- Economic Challenges: Indonesia’s economic growth has slowed, leading to lower consumer confidence and reduced spending on big-ticket items like cars.
- Inflation: Rising costs of goods and services have led to higher car prices, making it harder for many Indonesians to afford new vehicles.
- Shift in Consumer Preferences: There has been a growing interest in electric vehicles and more affordable options, with consumers moving away from traditional combustion engine vehicles.
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Outlook for 2025
With the advancement of the economy and the shift in the automotive market to electric vehicles, it is expected that sales of cars will gradually improve in Indonesia in the coming years. But with inflation surging and the global economy being so volatile, the short term forecast is not looking that rosy.