Last year, a record 816,747 new vehicles found homes in Malaysia – 48,976 units short of Indonesia’s 865,723 – and the Indonesian Automotive Industry Association (Gaikindo) is calling on the government to step up support for the sector, The Jakarta Globe has reported, citing Antara.
Analysts note that in recent years, Malaysia’s sales trajectory has been steadily catching up with Indonesia, which has long been ASEAN’s biggest car market.
“This is where the government’s role becomes crucial. In the short term, incentives – similar to those offered during the pandemic – are needed. The gap with Malaysia is narrowing. Without strategic action, it is not impossible that Indonesia could be overtaken,” Antara recently quoted Gaikindo secretary-general Kukuh Kumara as saying.
According to The Jakarta Globe, ASEAN Automotive Federation data shows that Indonesia still led in January-May 2025 vehicle sales with 390,467 units (Malaysia: 316,737 according to the MAA), although this was a year-on-year (YoY) decline.
Nikkei Asia reports that in 2025’s second quarter, Malaysia sold 183,366 new cars (-1% YoY) while Indonesia sold 169,578 (-12% YoY), and in June, car sales in Indonesia fell 21% YoY to 57,760 units – the steepest monthly drop since March 2024.
Bank Danamon economist Hosianna Situmorang attributes this to weakening purchasing power among the middle class and tighter access to consumer financing, while according to Statistics Indonesia (BPS), the country’s middle class has shrunk from 57 million in 2019 to 49 million in 2024.
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