Chinese Car Market Share Has Penetrated 15 Percent in Indonesia

JAKARTA, KOMPAS.com – The competitive landscape of Indonesia’s automotive industry is beginning to experience significant changes. The strong dominance of Japanese brands, which has prevailed for a long time, is now gradually coming under pressure from manufacturers originating from China, which are becoming increasingly aggressive, especially in the electric vehicle segment.

Chief Executive Officer of PT Indomobil National Distributor, Tan Kim Piauw, assesses that this shift has been clearly evident in recent times.

“I think the public can see it, the shifting or share of cars from Japan to China is now increasing quite sharply,” Tan said in Jakarta (5/5/2026).

“So up to last year, the Chinese car share, in my opinion, has already reached 15 percent. In Indonesia, 15 percent. Yes, so that’s relatively quite large or quite high,” he stated.

This achievement serves as a strong signal that Indonesian consumers are starting to open up to new brands, especially those offering competitive technology and prices.

On the other hand, car sales in 2025, on a wholesale basis, were recorded at around 803,000 units, down about 7.2 percent compared to the previous year.

This decline was triggered by weakening consumer purchasing power as well as economic instability. Nevertheless, Japanese brands such as Toyota, Daihatsu, and Mitsubishi Motors still maintain their dominance in the top ranks.

For instance, BYD has successfully recorded significant growth, while VinFast is also beginning to enter the ranks of the best-selling brands in Indonesia.

The entry of various more affordable electric car models from China has become a game changer in the automotive industry.

The combination of competitive prices, advanced features, and support for the electrification trend makes these products increasingly popular.