Several car manufacturers have begun revising their sales targets for this year, the Association of Indonesian Automotive Industries (Gaikindo) revealed, following a decline in sales performance up to the third quarter of 2025. The upcoming Jakarta Auto Week, scheduled for November, is expected to be a key event that determines the direction of Indonesia’s automotive industry toward the end of the year. 

According to Gaikindo data, car sales in September 2025 dropped by 15.1% year-on-year, from 73,108 units in September 2024 to 62,071 units. Cumulatively, sales from January to September 2025 reached 562,000 units, a decline of 11.31% compared to the same period last year. 

“The current feedback from Gaikindo members indicates a need to revise the target, but we are still waiting for input from all car manufacturers before finalizing the revision. In addition, we hope that sales will improve during Jakarta Auto Week at the end of November 2025,” said Gaikindo Chairman I Jongkie D. Sugiarto to Katadata.co.id on Wednesday, October 29. 

Jongkie noted that consumer purchasing power remains the key factor influencing the automotive industry’s performance. He said it is still uncertain whether the weakened purchasing power that has dampened sales this year will continue into 2026. In addition to purchasing power, Jongkie highlighted three other factors that will affect next year’s automotive industry: global economic conditions, national economic growth, and bank interest rates. 

LCGC Segment Records Sharpest Decline 

Gaikindo reported that the decline in car sales from January to September 2025 was primarily driven by weaker demand for Low-Cost Green Cars (LCGCs), which typically serve as first-time purchases for consumers. 

According to Katadata’s records, LCGC prices as of July 2025 ranged between IDR 140.3 million and IDR 202.5 million. Sales in this segment have continued to decline over the first nine months of the year, with the sharpest drop occurring in June 2025, when LCGC sales fell by 45.58%, from 15,252 units to 8,300 units, compared to June 2024. 

As of September 2025, LCGC sales decreased by 43.33% year-on-year to 8,315 units. Total LCGC sales from January to September 2025 reached only 94,312 units, down by more than 30% compared to the same period last year. 

Previously, Gaikindo Secretary-General Kukuh Kumara also stated that car sales trends in the second half of this year remain sluggish, including in the electric vehicle segment. 

“Signals of optimism in second-semester sales are mixed, but sales from July to December 2025 are likely to remain challenging,” Kukuh told Katadata.co.id on Thursday, July 10. 

This article is published in partnership with Katadata 

Original article here