Indonesia’s New Car Sales Surge 18% YoY in December 2025, Yet Annual Volume Drops 7%

In December 2025, Indonesia’s new vehicle sales reached 94,100 units, up nearly 18% year-on-year, driven by a rush to purchase before the expiration of incentives for battery electric vehicle (BEV) imports and year-end promotional campaigns. Despite this strong monthly performance, total vehicle sales for the full year 2025 declined by 7% year-on-year to 803,687 units. Sales of light passenger vehicles fell by 9%, while those of small internal combustion engine (ICE) vehicles plummeted by 31%. Japanese brands generally saw declines, with Toyota and Honda sales dropping by 13% and 40%, respectively. Meanwhile, Chinese brands continued their rapid rise: BYD and Denza together sold 54,248 BEVs in Indonesia in 2025, capturing 51% of the local pure-electric market. Total BEV sales in Indonesia surpassed 106,000 units in 2025—more than double the previous year—with December alone accounting for 23,242 units, a surge of 134% year-on-year. On the production side, total vehicle output edged down slightly by 4% for the year, while exports grew by 10% to reach 518,212 units. Industry analysts expect a modest recovery in Indonesia’s light vehicle sales in 2026.