Indonesian auto: depressed in 2024, “wide open” in 2025?

Although Indonesia’s mineral resources offer growth potential in the evolving electric vehicle (EV) market, the country’s automotive industry is struggling. Data published on 15 November 2024 by the Association of Indonesia Automotive Industries (GAIKINDO) stated that new vehicle sales between January and October 2024 were 710,406 units, a year-on-year decline of 15%.

This marks the latest blow in a generally disappointing year for the Indonesian industry. In late October, GAIKINDO lowered its full year forecast from 1.1 million units to 850,000. Both figures are below the historical high-water mark—1.2 million in 2013—and there is currently little prospect of surpassing it in the future. “We hope that the national car sales projection of 850,000 units can be achieved,” commented Co-Chairman Jongkie Sugiarto.