Why New Car Sales in Indonesia Are Outperformed by Malaysia

There is a difference of up to 13,788 units. A very large number for the current conditions.

"In Indonesia, despite having a large population, it is currently experiencing economic pressure. Especially in the automotive sector," the report continued.

On the other hand, there are still a number of factors that are boosting car sales in Malaysia, resulting in a very positive performance.

For example, the government there is implementing sales tax exemption incentives for new cars.

Photo : Courtesy

This assistance has been in place since the Covid-19 pandemic and continues to this day.

Locally assembled cars are given a 100 percent tax exemption, while Completely Built Up (CBU) vehicles are only charged half.

Automatically, vehicle taxes in Malaysia are much cheaper than in Indonesia.

Then, the price of fuel (BBM) is also cheaper in the neighboring country thanks to subsidies. For example, gasoline with RON 95 is only priced at RM 2.05 or the equivalent of Rp 7,879 per liter.

Meanwhile, in Indonesia, the subsidized fuel is Pertalite with RON 90, which is sold at Rp 10,000 per liter.

So it's no wonder that people in Malaysia are interested in buying new cars this year.

Photo : Suzuki

Indonesia and Malaysia Car Sales Second Quarter 2025

Indonesia

• Second Quarter 2025 : 169,578 units 
• Electric Cars: 19,238 units
• Hybrid Cars: 14,853 units

Malaysia

• Second Quarter 2025 : 183,366 units
• Electric Cars: 12,733 units
• Hybrid Cars: 17,480 units