Indonesian Vehicle Sales Surge 28% in September 2026

New vehicle sales in Indonesia surged 28% year-on-year in September 2026, reaching 79,540 units compared to 62,090 units in the same month the previous year, according to wholesale data from the Indonesian automotive industry association Gaikindo. The growth was driven by heightened demand for trucks and battery electric vehicles (BEVs), which together propelled the market higher.

First Nine Months Show Strong Recovery

The market expanded by 21% in the first nine months of 2026, reversing an 11% decline in 2025. Light passenger vehicle sales rose nearly 15% to 493,792 units, while commercial vehicle sales jumped 42% to 185,228 units. Truck sales alone increased by 52% to 150,692 units, reflecting robust demand for light- and medium-duty models.

BEV sales more than doubled in the January-September period, reaching just under 120,000 units. Chinese brands dominated this segment, supported by government tax incentives that reduced import duties and accelerated adoption. The truck market benefited from government procurement initiatives aimed at strengthening rural cooperatives and regional logistics networks, creating steady demand for delivery vehicles.

Economic and Policy Factors at Play

GDP growth moderated to 5.3% year-on-year in the second quarter of 2026, down from 5.6% in the first quarter. Government spending drove much of the expansion, growing 16% after a 22% increase in Q1, though rising fuel subsidy costs contributed to the slowdown. Private consumption rose 5.1% in Q2, a deceleration from 5.5% in the previous quarter, following a central bank rate hike to 5.75% to counter inflationary pressures.

Brand Performance and Market Shifts

Toyota maintained its lead in the first nine months, with sales up 9% to 197,809 units. Daihatsu rebounded with an 18% increase to 112,442 units after a sharp drop in 2025. Suzuki grew sales by over 20% to 53,224 units, helped by new model launches. Mitsubishi Motors saw a 1% decline to 48,414 units, while Honda experienced a 36% plunge to 29,903 units, highlighting uneven performance among traditional automakers.

BYD entered fifth place after an 118% surge in sales to 43,727 units, highlighting the impact of its electric vehicle strategy. Mitsubishi-Fuso, focused on commercial vehicles, reported a 79% jump to 32,111 units, directly benefiting from government rural logistics programs that prioritized procurement of light- and medium-duty trucks.

Production and Export Trends

Overall vehicle production rose 15% to 982,721 units in the first nine months of 2026. Exports of fully assembled vehicles fell 3% to 371,260 units during the same period, indicating a potential shift in domestic market focus amid strong local demand.

GlobalData forecasts light vehicle sales to reach 824,000 units in 2026, up 10% from 2025, with a slight decline to 805,000 units projected for 2027. This outlook suggests sustained momentum in the Indonesian market, driven by policy support for electric mobility and infrastructure development.