Malaysia Overtakes Indonesia in 2025 Automotive Market: Gaikindo Analysis

JAKARTA — Vehicle sales in Indonesia have fallen to second place in Southeast Asia (ASEAN) after being overtaken by Malaysia throughout 2025.

The Chairman of the Indonesian Automotive Manufacturers Association (Gaikindo), Putu Juli Ardika, stated that automotive market dynamics in the region are heavily influenced by each country’s government policies. He noted that policy changes can directly impact sales performance in each market.

“Looking at ASEAN, there are certainly countries experiencing growth and others declining. From our perspective at Gaikindo, this largely depends on precise and measurable government policy,” Putu told Kompas.com.

He acknowledged that Indonesia currently ranks below Malaysia in annual vehicle sales, a significant shift from its historical position as the region’s leading automotive market by a considerable margin.

“Regarding Malaysia, they have indeed grown and surpassed us. Now we’re in second place. One reason is that our purchasing power has slowed over the past year,” Putu explained.

According to data from the ASEAN Automotive Federation (AAF), vehicle sales in Malaysia throughout 2025 reached 820,752 units, rising approximately 0.5 per cent compared to 2024’s figure of 816,747 units.

Thailand, which previously often held the second position in the region’s automotive market, now ranks third with sales of 604,755 units. This figure is only marginally ahead of Vietnam, which recorded 604,134 units in 2025. Compared to the previous year’s 304,142 units, vehicle sales in this market surged approximately 98.6 per cent.

Nevertheless, Putu assessed that the foundation of Indonesia’s automotive industry remains reasonably robust. Various programmes already underway, such as increasing local content in vehicle production, are viewed as playing an important role in strengthening the automotive manufacturing sector.