Automotives In Indonesia

Indonesian love large-capacity car for their mobility

The multi-purpose vehicle (MPV) leads the car market automotives in Indonesia. Indonesians enjoy taking trips with the family or invite some friends, therefore a big car is required. The MPV can carry up to seven passengers, thus meets this request.


  • Automotives in Indonesia industry grows 5% in 2018 due to expanding exports and modest growth in the domestic market. Industry’s production value expands by 8% in 2018 to IDR 665.2 trillion. Industry forecast to see 10% CAGR over the period to 2023, with weaker demand in the domestic market expected to be offset by rising exports and investments into auto parts segment.
  • Indonesia exported 346,000 vehicles in 2018,  264,000 of which were completely built-up (CBU), while 82,000 others were completely knocked down (CKD). The total value of vehicle exports stood at USD 4 billion, plus USD 2.6 billion from component exports.
  • In the vehicle market, the vehicle market remained positive throughout the second half of 2018
  • New vehicle sales in Indonesia increased by 3.5% to 87,846 units in December 2018 compared with 84,880 units in the same month of the previous year, according to wholesale data compiled by the Association of Indonesian Automotive Industries (Gaikindo).
  • Full-year vehicle sales increased by 6.6% to 1,151,291 last year compared with 1,079,534 units in 2017, boosted by an almost 18% rise in commercial vehicle sales to 276,631 units from 235,310 units in the previous year – driven by continued strong investment in infrastructure and private construction projects. Passenger vehicle sales were up by just 3.6% at 874,660 units from 844,224 units.
  • The increasing demand for luxury sports cars is continuously attracting luxury car companies to bring new products into Indonesia.
  • According to ASEAN Automotive Federation, Indonesian vehicle market sales are one-third of total vehicle sales in ASEAN (more than 3 million in 2017).
  • No restriction in car’s age in Indonesia leading to growing demand in the used car market.
    • Indonesia’s developing used car market is gradually becoming more structured due to the greater availability of flexible financing terms, standardized and authorized dealership channels and better transparency of information.
    • Independent dealers continue to drive the used car market due to their widespread presence throughout Indonesia, flexible negotiation for prices, lower margins, quick turnover and a wider variety of car age available.
    • In recent times, more Indonesians are finding internet-based stores to be a boon in their increasingly busy daily lives. With rising internet penetration, consumers are slowly shifting away from the traditional methods of shopping. The advent of online auto classified portals such as Carmudi, OLX, and Mobil88 has streamlined the used car industry in the country. There is more transparency in the market and buyers have a wide variety of brands and models to choose from the convenience of their home.