Rising from 2025, 2026 Car Sales Target Set at This Level

Indonesia’s automotive industry is still holding high expectations this year. The vehicle sales target has been set at 850,000 units, yet to return to the one million unit level. Gaikindo General Secretary Kukuh Kumara stated that the target was formulated considering various ongoing challenges. He assessed that market conditions have not fully recovered, particularly in terms of demand. For the record, Gaikindo previously recorded total car sales from manufacturers to dealers (wholesales) in 2025 reaching 803,687 units. This figure dropped 7.2% compared to the 2024 achievement, which was still at 865,723 units. A similar decline occurred in retail sales or distribution from dealers to consumers, recorded at 833,692 units, weakening by around 6.3% year-on-year, where 2024 retail sales reached 889,680 units. “The target is still at 850,000 units this year,” he told CNBC Indonesia on Tuesday (7/4/2026). According to Kukuh, there are several main factors restraining industry growth, including weak public purchasing power. Additionally, external factors such as geopolitical conflicts are also influencing it. “Yes, plus there are geopolitical conflicts,” he said. Amid these conditions, the industry is also facing rising production costs that impact vehicle selling prices. This further narrows the market’s room to manoeuvre. Without demand recovery, it is difficult for the industry to record significant growth again. He also touched on the importance of global stability to support domestic industry recovery. On the other hand, industry players are still striving to maintain a balance between production and demand. This strategy is implemented to avoid excess supply in the market. Although the target is not ambitious, the industry still hopes for improvements in the second half of this year. “Hopefully the conditions improve, so sales can be boosted,” he said.