New Car Sales Predicted to Improve in Early 2026

KatadataOTO – 2025 is becoming a difficult year for new car sales in Indonesia. Many challenges are hindering automotive industry players.

For example, the unstable economic conditions are affecting the purchasing power of people in the country when it comes to buying vehicles.

However, several parties believe this situation will not last long. New car sales in the country are predicted to improve soon.

“With the current conditions, a significant rebound might occur starting in 2026, not in the remainder of 2025,” said Josua Pardede, Chief Economist of Permata Bank to KatadataOTO some time ago.

Photo : KatadataOTO

Josua explained that the improvement of new car sales in Indonesia could be determined by several factors, such as a significant decrease in financing interest rates.

Furthermore, inflation must remain low and the rupiah exchange rate against foreign currencies stable, so that new car prices do not surge as they do now.

“Government incentives, for example for Electric Vehicles (EV) and hybrid cars, could be expanded,” Josua continued.

The recovery of new car sales in Indonesia also heavily depends on consumer expectations and the availability of jobs in the country.

This can reduce the number of unemployed people, allowing the upper-middle-class population to grow.

If this happens, the four-wheeled vehicle market in Indonesia is believed to be able to improve next year. As a result, the automotive industry can be saved from the brink of bankruptcy.

Previously, Josua also explained that if new car sales are to recover quickly, manufacturers must provide various attractive programs.

For instance, a combination of promos such as interest subsidies from financing company partners, price adjustments, and product lines.

For credit purchase transaction programs, Josua believes they should be implemented more aggressively in provinces where credit has recovered.

Then, manufacturers can start introducing non-premium hybrid variant cars that can help save fuel consumption and address cost of ownership efficiency.

Photo : KatadataOTO

For your information, based on data from the Association of Indonesia Automotive Industries (Gaikindo), over seven months, only 453,278 units have been distributed from dealers to consumers (retail sales).

When compared to the same period last year, there is a difference of 54,763 four-wheeled vehicles, representing a decrease of about 10.78 percent.

As a reminder, from January to July 2024, retail sales of new cars, according to Gaikindo data, were at the level of 508,041 units.

New Car Sales Data in Indonesia

• January-July 2025: 453,278 units
• January-July 2024: 508,041 units