Indonesian Automotive Sector Faces Headwinds in 2026

Declining Vehicle Sales Impact Market Performance

The Indonesian automotive market is on track to end 2025 below initial targets, with sales trending downward throughout the year ¹

. As of November 2025, new vehicle sales reached 710,084 units, representing a 9.6% decline compared to the same period in 2024. The government's target of 800,000 units appears increasingly challenging ¹

Source 1

https://investasi.kontan.co.id/news/penjualan-mobil-lesu-saham-otomotif-masih-penuh-tantangan-pada-2026

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Challenges for Automotive Companies

The continued decline in vehicle sales is creating significant challenges for automotive and spare parts companies. The negative sentiment is expected to persist into 2026, affecting listed companies in the sector ¹

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Source 3

https://investasi.kontan.co.id/news/cek-rekomendasi-saham-asii-drma-auto-bolt-untuk-perdagangan-senin-512026

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Bright Spot in Used Car Market

Despite the challenges in new vehicle sales, the used car market is showing signs of improvement heading into 2026. There is growing interest in Chinese automotive brands, with market players noting increased inquiries at the beginning of 2026 ²

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Market Outlook for 2026

While the overall automotive sector faces headwinds, the diversification of vehicle choices and changing consumer preferences may create opportunities for certain segments. Companies that can adapt to these changes may find growth opportunities despite the overall market challenges.