Luxury Car Sales in Indonesia Drop, Ford Boss Reveals the Reason

KatadataOTO – Luxury car sales in Indonesia were considered unaffected by the weakening of purchasing power and the influx of electric cars.

However, as of October 2025, luxury car sales figures began to be disrupted, experiencing a rather drastic decline of 33 percent.

Referring to Gaikindo data, retail sales of luxury cars (delivery from dealer to consumer) were 391 units. This is despite the figure reaching 588 units in September 2025.

Although generally unaffected by the economic situation, the head of Ford believes other external factors are one of the causes for the decline in sales of luxury cars or the premium segment.

Photo : BYD

“What we are seeing is that many people are choosing electric vehicles as their second car,” said Roelof Lambert, Regional Director of RMA Indonesia in Jakarta, on Tuesday (11/11).

According to Roelof, various consumers in the premium segment are ultimately replacing their luxury cars with electric cars. He said the luxury car market priced at Rp 1 billion and above has declined by 40 percent in 2025.

This is especially true given the massive influx of Chinese products in Indonesia. Most recently, Chery's sub-brand, Jaecoo, introduced the J5 EV, an electric Sport Utility Vehicle (SUV), with a price tag starting from the Rp 200 million range.

This range of Chinese products certainly becomes a special consideration for consumers looking to own a second vehicle.

It then becomes an attractive alternative for customers across segments because there is a variety of models, even extending to Multi-Purpose Vehicles (MPVs) like the Denza D9 in the Rp 950 million range.

“So yes, it is an interesting and perhaps unexpected phenomenon. But I am confident that (luxury car sales) will bounce back,” said Roelof.

Photo : KatadataOTO

Roelof, who previously led Mercedes-Benz in the country, believes the Indonesian automotive market can still recover despite facing several challenges.

Facing the tight competition in the Indonesian automotive industry, Roelof emphasized that his party is continuously working to strengthen the Ford brand domestically to reach more customers.

“Our footprint is still very small in Indonesia, and we will certainly try to increase it in the future. We will add more dealers, making it easier for consumers to get to know us and Ford's products,” Roelof affirmed.