Indonesia’s new car market continued to grow strongly in December 2022, with sales up 9% to 105,354 units from 96,673 units a year earlier, according to members’ wholesale data compiled by local auto industry association Gaikindo.
The country’s vehicle market has now returned to pre-pandemic levels after a strong recovery over the past two years. The economy is estimated to have grown by 5.5% in 2022, helped by the return of international tourism after two years of restrictions, rising private investment and strong consumer spending. The Bank of Indonesia raised its benchmark interest rate to 5.5% last year from 3.5% at the end of 2021 to curb rising price inflation.
For the full year, vehicle sales rose 18% to 1,048,040 units from 887,202 units a year earlier, a level last seen in 2019. Passenger car sales rose 18% to 777,866 units, while commercial vehicle sales rose almost 19% to 270,174 units.
Just over 10,000 electric vehicles were sold in the country last year, mostly Hyundai and Wuling models. The government has introduced measures to boost demand for electric vehicles (EVs), including tax incentives and encouraging national and regional governments to switch to battery-powered vehicles.
Toyota Sales grew 12% last year to 331,410 units, helped by the launch of new models including the popular new compact MPV Avanza late last year.
daihatsu Sales increased by 23% to 202,665 units, while being carried by the new models Xenia and Terios and the small car Sigra Honda Sales increased 48% to 134,761 units, helped by the recent launch of the new HR-V and BR-V models.
Mitsubishi Sales fell 9% last year to 99,051 units after the company outperformed last year Suzuki Sales were slightly lower at 90,408 units.
According to the association, vehicle production rose 31% last year to 1,470,146 units, while exports of assembled vehicles rose 61% to 473,602 units.
