Fluctuations in Indonesia's Automotive Market Occur in the First Quarter of 2026

JAKARTA, KOMPAS.com – The performance of the national automotive market in the first quarter of 2026 shows a dynamic pattern, with a surge in sales throughout February before experiencing a fairly sharp correction in the following month. This momentum confirms that early-year demand temporarily strengthened but has not yet fully stabilised due to seasonal factors and cost pressures. Based on data from the Indonesian Automotive Industry Association (Gaikindo), retail sales of four-wheeled or more vehicles increased from 39,112 units in January 2026 to 44,665 units in February 2026, then fell back to 39,824 units in March 2026. This condition aligns with factory-to-dealer distribution data (wholesales), which also showed a significant contraction in March 2026. Distribution was recorded at 61,271 units, down 24.6 percent from February 2026’s 81,250 units. Monthly retail sales also weakened to 66,637 units, a 14.8 percent decline from 78,239 units in February 2026, indicating a drop in consumer-level transaction activity. Gaikindo I Chairman Jongkie D. Sugiarto explained that the decline is inseparable from the extended Eid al-Fitr holiday period, which affected distribution and sales activities. “In March 2026, there was a decline due to the long Lebaran holiday,” he told Kompas.com recently. In February 2026 alone, sales exceeded 44,000 units, reflecting strong demand for passenger cars that offer a balance between price, functionality, and fuel efficiency. The trend towards seeking efficiency is also reflected in the relatively stable performance of the low cost green car (LCGC) segment. Throughout January-March 2026, sales held steady at around 10,000 units per month, namely 9,655 units, 11,002 units, and 9,453 units. This consistency indicates that energy-efficient vehicles remain a rational choice amid rising operational costs. In contrast to passenger vehicles, the commercial segment showed more varied movements.