2024 Car Sales Plummet, Failing to Reach 1 Million Units

KatadataOTO – Car sales in Indonesia experienced a significant decline in 2024 compared to the results in 2023. Based on Gaikindo data, vehicle wholesales from January to December were only  865,723 units.

This means there was a correction of 140,079 units or about 13.9 percent from the previous achievement of 1,005,802 units.

This result was obtained after vehicle wholesales in December 2024 recorded a figure of 79,806 units. This number is an increase compared to November 2024, which was only 74,853 units.

A decline also occurred in retail sales, which only recorded 889,680 units throughout 2024. That figure is 10.9 percent lower than the achievement in the same period last year of 998,059 units.

Photo : Special

Throughout December 2024, car sales in Indonesia reached 82,094 units. That figure is quite high compared to the previous period, which was 76,473 units.

Despite experiencing a decline, vehicle sales still met Gaikindo's revised target. This is because the association only targeted selling 850,000 units in 2024, down from the previous 1 million units.

“The automotive sector is contracting, firstly because of a major political agenda,” said Yohannes Nangoi, Chairman of Gaikindo, some time ago.

He also revealed that high credit interest rates at the beginning of the year also had a negative impact on sales. This is because most sales are made through financing companies.

The Pressure Is Not Over Yet

The pressure in 2024 seems unlikely to end. This is because the government has issued several unpopular policies, such as implementing an 'opsen', which increases the cost of vehicle ownership.

"The most difficult challenge for car manufacturers and consumers is the tax regulated by the regional government, called 'opsen'. This will make things difficult for the automotive sector," said Agus Gumiwang Kartasasmita, Minister of Industry (Menperin), as reported by Antara some time ago.

Photo : Special

“Because local people cannot buy cars and in the end, the (tax) revenue does not come in for them and they get no income,” he added.

Therefore, he believes that regional governments will implement various relaxations to ensure people can still buy vehicles.