omestic car sales have plummeted in what automotive industry representatives attribute to a drop in demand on the back of weaker economic sentiment.
According to the Indonesian Automotive Manufacturers Association (Gaikindo), wholesalers sold 69,619 cars nationwide last month, marking a 26 percent decline from the 94,270 units sold in January 2023.
Retail sales also declined strongly, dropping by 13.9 percent from 90,892 cars sold in January 2023 to 78,214 in January 2024.
Gaikindo chairman Jongkie Sugiarto said the poor car sales were related to Indonesia’s slower economic growth and suggested that uncertainty over the economic outlook was making consumers think twice before making large purchases.
Indonesia’s GDP growth fell to 5.05 percent last year, Statistics Indonesia (BPS) reported last week. That marks a slowdown from the growth rate of 5.31 percent logged in 2022, when the economy was bouncing back from the slowdown caused by the coronavirus pandemic in 2021.
The Toyota brand continues to dominate Indonesia’s car market despite seeing its wholesale sales fall almost 28 percent to 20,988 vehicles in January 2024 from 28,970 a year earlier.
Read More: Car sales plummet 26 percent year-on-year in January – Markets