Indonesia Car Sales Rise 33.3% in July

New car sales in Indonesia grew 33.3% year-on-year to a five-month high of 81,115 units in July 2026, following a 32.9% increase in June and marking the fourth consecutive month of expansion, according to data from the Association of Indonesian Automotive Industries (Gaikindo). For the first seven months of the year, sales rose 18.3% from the same period a year earlier to 437,544 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. 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.

New car sales in Indonesia rose 32.9% year-on-year to 77,555 units in June 2026, following a 14.0% increase in May and marking the third month of growth. Monthly, new car sales rose 12.0%, rebounding from a 14.0% drop in May. 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. Sentiment is expected to receive further support from upcoming major automotive events. Even so, caution lingers as 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.