Car Sales in Indonesia Stagnant at 1 Million Units Every Year, Here's Gaikindo's Steps

Booth DFSK and Seres in GIIAS 2023. (Doc. PT Sokoindo Automobile)

JAKARTA - In recent years, many new manufacturers have contributed to the Indonesian car market, but national car sales have remained stagnant at around one million units per year for the last decade.

Kukuh Kumara, General Secretary of Gaikindo, revealed that his organization is still looking for innovative formulas to increase sales figures, and is currently conducting a study with LBM UI.

"We are currently conducting an evaluation with LBM UI to understand the reasons why national car sales are still stable at one million units," he said when interviewed in Jakarta on Tuesday, January 16.

Kukuh added that the highest car sales in Indonesia were recorded in 2013 with 1,229,811 units. Even though it experienced a decline in the following years, this figure remained at the level of one million. Some factors believed to be causing this stagnation include excessively high car prices, slow economic growth, and shifting consumer preferences.

"With the shift in consumers, especially by the millennial generation and Gen Z, market preferences can change, becoming a challenge for this industry," he added.

According to Kukuh, the millennial generation is more interested in technology, with vehicles equipped with advanced features, such as Google Maps. Therefore, the automotive industry strategy must adapt to this trend.

On the other hand, Kukuh also underlined the efforts of neighboring countries to maintain their automotive industry, showing the importance of facilitation for new investors and industrial components.