Indonesia’s automotive industry has set a national car sales target of 850,000 units in 2026, betting on a modest recovery after vehicle sales declined last year, according to the Association of Indonesian Automotive Industries (Gaikindo).
“Basically, we have agreed to set a target of 850,000 units this year,” Secretary General Kukuh Kumara said on Friday said during a discussion hosted by the Electric Mobility Ecosystem Association in Jakarta. “If there are new developments or new government policies, we will review it again,” he added, as quoted by Antara.
The 2026 goal marks a modest recovery from 2025, when domestic car sales declined for a second consecutive year. Wholesale sales — vehicle shipments from manufacturers to dealers — fell 7.2% to 803,687 units in 2025, down from 865,723 units a year earlier. Retail sales, measured from dealers to consumers, slid 6.3% to 833,692 units from 889,680 units in 2024, according to Gaikindo data.
Industry players expect the first quarter of 2026 to remain challenging, largely due to the long Eid holiday period from mid-February to mid-March, which reduces the number of effective working days at assembly plants. While the festive season typically boosts consumer spending, extended factory shutdowns can weigh on production and deliveries in the short term.
“The early part of the year will be unique,” Kukuh said. “The long Eid holiday means fewer working days, which affects output.”
Source: jakartaglobe