Isuzu Believes New Car Sales in 2025 Remain Challenging

88KatadataOTO – The new car market is still facing various obstacles at the beginning of 2025. This is being felt by many parties.

No exception for IAMI (Isuzu Astra Motor Indonesia). They assess that this year is still very challenging.

"This year, we actually hoped it would be better, but it is indeed a bit difficult to return to the point before last year," said Yusak Kristian, President Director of IAMI in Central Jakarta, Wednesday (05/03).

Yusak further stated that at the beginning of the year, there were a number of stumbling blocks for new car sales. Such as several proposals put forward by the government.

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For example, the issue of implementing an option on PKB (Motor Vehicle Tax) and BBNKB (Vehicle Title Transfer Fee).

Then there is still the implementation of a 12 percent VAT. Thus affecting the purchasing power of the people in the country.

"Last January, we were quite dragged down because there were several regulations whose finalization was very close to the end of the year. So we couldn't run at full speed," he continued.

Nevertheless, Yusak stated that in February 2025, Isuzu's sales had shown improvement compared to the previous month.

"February was much better. But still, the slowdown at the beginning of the year still affects the total performance (of Isuzu)," he said.

Yusak also said that although Isuzu's strategy and products are solid, external factors also influence new car sales in Indonesia.

"If the economy doesn't move, it will still have an impact. So we hope the ecosystem as a whole can support growth this year," Yusak emphasized.

This Isuzu executive also hopes that new car sales in 2025 can perform even better.

For your information, based on data from Gaikindo (Association of Indonesian Automotive Industries), in January 2025, shipments from factories to dealers (Wholesales) were only 61,843 units.

The figure above was corrected by 11.3 percent compared to the same period last year. According to records, in January 2024, there were 69,758 units.

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Meanwhile, retail sales suffered a similar fate. Dropping 18.6 percent from 78,437 units to 63,858 units.

Meanwhile, wholesales throughout 2024 also plummeted by 13.9 percent YoY (Year on Year) compared to the 2023 period, from 1,005,802 units to 865,723 units.

Finally, retail sales from January to December 2024 were only 889,680 units. Down 10.9 percent from the previous year, which was 998,059 units.