2025 Car Sales Will Still Struggle to Reach One Million Units

KatadataOTO – Gaikindo (Association of Indonesian Automotive Industries) has set the 2025 car sales target at 850 thousand units, with a potential correction to 750 thousand units or an increase to 900 thousand units.

Many factors are indicated to slow down car sales figures in 2025. For example, the increase in VAT (Value Added Tax) and the implementation of PKB and BBNKB surcharges in several regions.

Seeing these conditions, observers believe that four-wheeled vehicle sales throughout this year will still not be able to break the one million unit mark. Even though the government has provided assistance such as incentives for hybrid cars.

“Gaikindo's assessment is also that car prices tend to increase, so automatically if there is no quick push from the public's spending side, such as spending or income, I think it will be quite difficult to reach one million units,” said Josua Pardede, Chief Economist of Permata Bank when met at JIExpo Kemayoran some time ago.

Photo : Special

For that reason, he emphasized that the sales projection for four-wheeled vehicles for the time being will still be below 900 thousand units due to several factors.

Then for sales outside of Java island, regions that rely on commodities such as Sumatra and Kalimantan will be affected if commodity prices in the global market fall.

These various situations are then predicted to hinder the increase in car sales in 2025. One thing that manufacturers can do is to maintain the selling price to keep it within the range of the public's ability or purchasing power.

“And what we are also waiting for is the direction of interest rates. That is also important,” Josua emphasized.

Interest rates play an important role in vehicle purchase transactions made on credit. If stable, it is hoped that it can make it easier for consumers to buy new cars.

Minister of Industry Wants Manufacturers to Lower Car Prices

In line with the observer's opinion, Agus Gumiwang Kartasasmita, the Indonesian Minister of Industry, believes there needs to be a reduction in the price of four-wheeled vehicles to boost sales.

Photo : KatadataOTO

“We hope for new policies, for instance, sacrificing margins or lowering the selling price of vehicles,” said the Minister of Industry on the sidelines of the inauguration of the Daihatsu factory in Karawang, West Java, Thursday (27/2).

He believes that the decline in public purchasing power is still one of the factors behind sluggish car sales in Indonesia.

Therefore, a decrease in car prices is expected to reinvigorate the automotive market and meet the sales target, at least reaching 850 thousand units or above last year's achievement.