Two Factors Achieving Growth in Indonesia's Automotive Market

The Indonesian automotive market in 2024 is challenging. Despite the influx of new brands, the market has stagnated and even shrunk, failing to break the million-unit mark for years, with Gaikindo targeting just 850,000 units this year. Manufacturers such as Hyundai are under pressure, with PT Hyundai Motors Indonesia's chief marketing officer stating thatRising interest rates, global uncertainties and other macro factors have led to a cold market, and there are also risks for consumers to purchase cars on credit.

Slow growth in per capita income is also one of the reasons for stagnant sales.In retrospect, LCGC vehicles had driven market growth in 2013 when sales peaked at 1.22 million units. Wholesale sales figures in recent years have shown ups and downs in the market, which could have been even more difficult without the cooperation between the government and manufacturers in launching new products and related policy support.