Gaikindo Acknowledges Indonesia's New Car Market Lost to Malaysia

KatadataOTO – The new car market in Indonesia in 2025 is not doing well. It continues to experience a decline from time to time.

In fact, four-wheeled vehicle sales in the country could be overtaken by those of Malaysia.

The Association of Indonesian Automotive Industries (Gaikindo), has spoken out regarding the current situation.

“We might lose to Malaysia this year, but that's the situation,” said Jongkie Sugiarto, Chairman I of Gaikindo in North Jakarta some time ago.

Photo: KatadataOTO

Jongkie did not deny that the condition of the new car market and the economy in Indonesia declined in 2025.

This was impacted by the uncertain global situation. Moreover, war is raging in several countries.

Then the trade war between China and the United States also had an impact. So manufacturers have to work hard to survive.

“So there are many events in the world that have an impact on Indonesia,” Jongkie continued.

For your information, Gaikindo reported that in November 2025, distribution from factories to dealers (wholesales) amounted to 74,252 units.

Meanwhile, shipments from dealers to consumers (retail sales) reached a level of 79,310 units last month.

Then, when combined from January to November 2025, it recorded 710,084 units in wholesales. Meanwhile, retail sales recorded 739,977 units.

On the other hand, citing the carz.com page, last month there were 77,876 new four-wheeled vehicles registered in Malaysia.

Cumulatively, there have been around 720 thousand new cars from January to November 2025 in the neighboring country.

Based on the facts above, it is not impossible that Malaysia could overtake Indonesia's figures at the end of 2025.

Of course, this is quite unfortunate, considering Indonesia has long held the title of the king of ASEAN. However, the situation has now changed.

Therefore, the government must pay more attention to the country's automotive industry if it does not want this to drag on.

Hoped to Recover Soon

Even so, Gaikindo is still very hopeful that Indonesia's new car market can improve in 2026.

Photo: KatadataOTO

“If the economy improves, everything will. Yesterday Mr. Purbaya said the hope is for six percent (national economic growth), of course (the automotive sector) will rise,” said Jongkie.

He is optimistic that the market recovery remains possible. Especially if the national economic conditions show improvement.

Jongkie also hopes that new car sales in 2026 will grow, able to break 800 thousand units or reach 1 million units.