Automotive Boss Warns Middle Class Still Struggling to Buy Cars

Jakarta, CNBC Indonesia - The recovery of the national automotive market does not yet fully reflect the restoration of public purchasing power. Behind the surge in car sales in April 2026, the middle-class segment is said to still be under considerable pressure.

Data from the Indonesian Automotive Industry Association (GAIKINDO) shows that national car wholesales, or distribution from manufacturers to dealers, reached 80,776 units in April 2026. This figure is up 55% from the same period last year.

The increase occurred after the automotive market slowed in March due to the Eid al-Fitr momentum. Public buying activity and vehicle distribution were temporarily held back during the long holiday period.

GAIKINDO Secretary General Kukuh Kumara said the current market conditions are not yet fully healthy. He assessed that middle-class consumers are still inclined to hold off on buying new vehicles.

“Meanwhile, for conventional ones, the middle class is still under pressure,” Kukuh told CNBC Indonesia on Monday (11/5/2026).

The pressure on the middle class means that sales of petrol-fuelled cars have not yet been able to recover significantly. Consumers are currently more cautious about making large purchases.

On the other hand, sales growth is coming from the group of people who already own vehicles. These consumers are considered to still have spending power amid economic uncertainty.

“So it comes back again, the buyers are people who have money,” he said.

GAIKINDO recorded that from January to April 2026, total national car wholesales reached 289,787 units, up 12.5% from the same period last year. Meanwhile, retail sales reached 287,581 units, up 6.9%.

Although sales trends are starting to rise, Kukuh said the automotive industry still needs stronger economic growth impetus for the market to truly recover.

“So if the growth is above 5%, that’s positive, but if it’s at 5%, it’s tending towards stagnation,” he said.

The automotive industry will be healthier if national economic growth can be above 6% and supported by a strong real sector.

“So we need growth above 5%, above that if possible 6%. Hopefully the 6% is also quality 6%, where the growth is based on real sectors,” said Kukuh.