Indonesia Car Sales Rise 14% in May

New car sales in Indonesia rose 12.0% year-on-year to 77,550 units in June 2026, following a 14.0% increase in May and marking the third consecutive month of growth. According to data from the Association of Indonesian Automotive Industries (Gaikindo), first-half sales rose 15.9% from the same period a year earlier to 436,564 units, highlighting resilient consumer demand despite inflationary pressures and higher non-subsidized fuel prices. Market sentiment is expected to receive further support from upcoming major automotive events. Even so, industry participants remain cautious as macroeconomic challenges persist, notably elevated borrowing costs that weigh on vehicle financing demand, the primary purchase channel for most Indonesian buyers. At the same time, the weak rupiah continues to raise the cost of imported components and raw materials, adding pressure to production costs and vehicle prices. Meanwhile, retail new car sales surged 19.6% yoy to 74,507 units.

New car sales in Indonesia increased 14.0% year-on-year to 69,219 units in May 2026, after surging 55.0% in the previous month. It was the second consecutive month of growth, though at a slower pace amid persistent price pressures. However, the Association of Indonesian Automotive Industries (Gaikindo) remains concerned about the weakening rupiah, which could potentially increase production and import costs if the depreciation persists. For the first five months of the year, car sales grew 12.8% from the same period in 2025, reaching 359,015 units. Gaikindo previously targeted domestic new car sales to reach 850,000 units in 2026. That figure represents a 5.8% increase from the 2025 total of 803,687 units. On a monthly basis, car sales fell, declining 14.3% from April, when sales totaled 80,776 units. Meanwhile, retail new car sales grew 16.8% month-on-month to 71,890 units.

New car sales in Indonesia surged 55.0% year-on-year to 80,776 units in April 2026, recovering from a 13.8% plunge in the previous month. The rebound came as activity returned to normal after the long Eid al-Fitr holiday in March. For the first four months of the year, car sales grew 12.5% compared to the same period in 2025, reaching 289,787 units. The Association of Indonesian Automotive Industries (Gaikindo) previously targeted domestic new car sales to reach 850,000 units in 2026. That figure represents a 5.8% increase from the 2025 total of 803,687 units. On a monthly basis, car sales also rose, jumping 31.8% from March, when sales totaled 61,271 units. Meanwhile, retail new car sales increased 13.7% month-on-month to 75,730 units.