Revised New Car Sales Target Predicted at This Figure

KatadataOTO – New car sales in Indonesia from January to July 2025 have not been very enthusiastic. It can even be said they are still far from expectations.

Processing data from the Association of Indonesian Automotive Industries (Gaikindo), over seven months, only 453,278 units were distributed from dealers to consumers (retail sales).

The number above is still below the achievement from January to July 2024. Because last year, it managed to record 508,041 units.

Based on this, Gaikindo is opening the option to revise the new car sales target for 2025.

Photo : Mitsubishi

Several parties have spoken out about the plan above, such as by suggesting a relevant figure for the new target.

"With the downward trend in sales that has occurred since the beginning of the year, a revision to the 600-700 thousand unit range is quite realistic," said Josua Pardede, Chief Economist of Permata Bank to KatadataOTO, on Monday (11/08).

According to Josua, there are several considerations why the new car sales target in Indonesia is more relevant at the aforementioned figure.

For example, the combination of factors weakening the purchasing power of middle-class households. This situation has been going on for quite some time.

Then, the high burden of installments or the allocation of income to loan payments has increased.

"Furthermore, the downtrading trend has caused new car sales in the Rp 500 million price segment to drop significantly, while used cars are actually growing," he continued.

Josua further explained that the upper-middle-class community shows growth. However, the number is not very large.

It is even relatively smaller compared to the lower-middle class. Thus, it is considered unable to compensate for the total market decline.

"Assuming there is no major stimulus or significant credit easing for the rest of this year, a conservative projection of 600-700 thousand units actually reflects a safer baseline," Josua affirmed.

For your information, Gaikindo had previously set a new car sales target for 2025. They hoped to sell 850 thousand four-wheeled vehicles.

This figure came with a potential downward correction to 750 thousand units, and also a chance to increase to 900 thousand units.

Photo : Courtesy

As a reminder, in recent times, the economic conditions in the country have not been doing well.

This has caused people's incomes to shrink, and the price of new cars has become more expensive over time.

Consequently, the public's purchasing power has dropped sharply, thus impacting the domestic automotive industry.