According to the GAIKINDO sales report, Indonesia Light Vehicle sales dropped slightly by 4% YoY and 2% MoM in July, but the YTD sales remained in the positive sales growth at 5% YoY. However, the July sales were stronger than expected and the July selling rate reached a robust 1.25 million units per year, up 31% from a solid June. The YTD selling rate averaged 967k units a year, compared to last year’s total LV sales of 960k units.
As such, GlobalData increased the Indonesia sales outlook to 971k units in 2023. Then, the market will reach 1.0 million units in 2024, driven by continuing recovery in the services sector (such as tourism) and election-driven fiscal spending in the run-up to the February 2024 presidential election.