Indonesian Automotive Industry Faces Challenges as Sales Decline

Weakening Industry Performance

The Indonesian automotive industry is experiencing a significant downturn, with national car sales reaching 710,084 units by November 2025. This represents a 9.6% decline compared to the same period last year when sales were 785,917 units ¹

. In response to this weaker-than-expected performance, the Indonesian Motor Vehicle Industry Association (Gaikindo) has revised its sales target for 2025. The new target is set at 780,000 units, significantly lower than the initial projection of 850,000-900,000 units.

Moderate Outlook for Automotive Emitters

Analysts are predicting a moderate outlook for automotive emitters through the end of 2025. Abida Massi Armand, a fundamental analyst at BRI Danareksa Sekuritas, notes that the industry's performance will be constrained by the still-high vehicle loan interest rates, which are dampening consumer purchasing power ¹

. The revised sales target and high interest rates are likely to impact the financial performance of automotive companies and their suppliers.

Financing Growth Expectations

PT Adira Dinamika Multi Finance Tbk (Adira Finance), a major player in automotive financing, is forecasting low single-digit growth in new financing for 2025. This projection aligns with Gaikindo's revised sales target of 780,000 units. According to Sylvanus Gani, Chief Financial Officer of Adira Finance, the forecast is based on the ongoing trend of a weakening automotive market that has been observed since the beginning of the year ²

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Implications for the Industry

The current challenges facing the Indonesian automotive industry are multifaceted. The decline in sales and the subsequent revision of sales targets by Gaikindo reflect broader economic conditions and consumer behavior. The industry's recovery will likely depend on factors such as changes in interest rates, government policies, and overall economic growth.