Toyota Reveals Cause of Sales Decline in LCGC Segment

KatadataOTO – Toyota sees that 2025 is a tough year for car manufacturers in Indonesia. A decline in sales, especially in the Low Cost Green Car segment or LCGC could be one of its references.

In fact, that segment usually serves as the backbone for several manufacturers in boosting sales the previous year. Since its customers are first-time buyers, there are several financial issues that affect it," said Henry Tanoto, Vice President at PT. Toyota-Astra Motor some time ago.

One of them is the high ratio of problematic credit, or non-performing loan (NPL). This situation makes financing companies more cautious in granting credit.

Photo: Instagram @indra_fathan

As a result, the public also finds it difficult to purchase vehicles, leading to a significant drop in LCGC sales.

Looking at data from the Indonesian Automotive Industry Association (Gaikindo), wholesales throughout 2025 recorded 122,686 units. This figure is down compared to 2024's 176,766 units.

Meanwhile for retail, LCGC recorded sales of 130,799 units. This figure is corrected compared to the similar period last year which reached 178,726 units.

"For this year, the hope is that it can be better especially in the LCGC segment and certainly other segments. Certainly if the economy improves, financing companies are expected to perform better in the future," he added later.

Car Sales National 2025

It should be noted that based on the Indonesian Automotive Industry Association or Gaikindo, retail car sales in Indonesia in 2025 amounted to 833,712 units. This number is down 6.3 percent compared to 2024.

At that time, sales from dealers to consumers were 889,680 units.

Meanwhile, wholesales in 2025 also experienced a fairly deep decline. Throughout January to December 2025, manufacturers could only deliver 803,687 units.

Photo: Exclusive

That figure is corrected by 62,036 units or about 7.2 percent compared to 2024. The domestic automotive market at that time recorded sales of 865,723 units.

The market is also expected to remain full of challenges in 2026. Moreover, the government will stop electric-vehicle incentives, which could increase vehicle prices.