Car Sales Suddenly Surge, Gaikindo Boss Reveals the Secret

Indonesia’s national car sales are showing signs of recovery following a downturn during the Eid al-Fitr period. The Indonesian Automotive Industry Association (Gaikindo) recorded wholesales, or distribution from factories to dealers, at 80,776 units in April 2026, a 55% jump compared to the same period last year. This increase also reverses the weakening automotive market in March, when the extended Idulfitri holiday period impacted sales. On a monthly basis, April wholesales rose 31.8% from March 2026’s 61,271 units. Gaikindo Secretary General Kukuh Kumara stated that the current recovery in car sales is not yet fully supported by new middle-class consumers. According to him, the sales increase is largely driven by consumers who already own vehicles. “So the buyers are still from groups that already have cars,” Kukuh told CNBC Indonesia on Monday (11/5/2026). The current vehicle purchasing trend differs from several years ago. Consumers with stronger financial capabilities remain active in buying, including additional vehicles for their households. “Second or third cars because of the recent war issues,” Kukuh said. Upper-class consumers are now returning to electric vehicles. Some who previously sold their electric cars are buying similar ones again. “They’re starting to think, from what I hear from those groups, some who once had electric cars sold them, now buying again like that. Buying electric cars again,” he said. On the other hand, the conventional car market is still facing pressure. Kukuh noted that middle-class purchasing power has not fully recovered, so purchases of petrol-fuelled vehicles have not moved significantly. “Meanwhile, for conventional ones, the middle class is still under pressure,” he stated. Gaikindo is still holding to its national car sales target of 850,000 units for this year. However, Kukuh acknowledged that the target remains quite challenging to achieve. “Not yet, still at 850,000. Still far off, although if we project now with 80,000 sales, if we can maintain it, we might be a bit above 850,000,” he said.