Domestic Car Sales Remain Sluggish in June 2024

The Indonesian Automotive Industry Association (Gaikindo) reported that domestic wholesale car sales reached 72,936 units in June 2024. This figure represents an 11.75% decrease year-on-year (YoY) compared to June 2023, which saw 82,656 units sold.

Cumulatively, domestic wholesale car sales from January to June 2024 totaled 408,012 units. This also shows a decrease of 19.43% compared to the same period in the previous year (cumulative-to-cumulative/CTC), which recorded 506,427 units.

Gaikindo's Secretary General, Kukuh Kumara, explained that the decline in domestic car sales over the past two years is attributed to rising global interest rates, a surge in non-performing loans (NPLs), and tighter credit from financing companies.

He stated that Gaikindo will likely revise its 2024 car sales target of 1.1 million units, considering several market-dampening factors.

"One factor contributing to the stagnation of the car market is that the price of new cars is unaffordable for the per capita income of the population. The gap between household income and the price of new cars is widening," said Kukuh in a discussion titled "Solutions to Overcome Car Market Stagnation" on Wednesday, July 10, 2024.

Kukuh added that national economic growth needs to be increased to 6-7% per year for Indonesia to escape the trap of a domestic car market capped at one million units.

In June 2024, Toyota remained the top-selling car manufacturer in Indonesia with wholesale sales of 25,464 units. This was followed by Daihatsu and Honda, which recorded wholesale sales of 14,967 units and 7,618 units, respectively.