Automotive - Indonesian car sales decline in Jan25

Automotive - Indonesian car sales decline in Jan25 The Indonesian Automotive Industry Association (Gaikindo) reported an 11.3% yoy decline in national car sales in January 2025, with total wholesale sales reaching 61,843 units compared to 69,758 units in the same period last year. Retail sales also experienced a significant drop, falling 18.6% yoy to 63,858 units from 78,437 units in January 2024. Gaikindo Chairman I, Jongkie Sugiarto, expressed cautious optimism for 2025, projecting car sales to reach at least 900,000 units, a slight increase from the 865,000 units achieved in 2024. "We aim for a modest increase to 900,000 units this year," stated Jongkie. "While we are optimistic about achieving this target, we would naturally welcome any higher sales figures." Monthly sales data revealed a significant decline in January compared to December 2024. Wholesale sales plummeted by 22.5% to 61,843 units, while retail sales fell by 22.2% to 63,858 units. Leading the market, the Astra Group, comprising Toyota and Daihatsu, maintained its dominance with combined sales of 32,065 units in January 2025. Honda followed with 7,276 units, followed by Mitsubishi Motors with 5,028 units, and Suzuki with 4,982 units. (Source : Bisnis Indonesia). Comment : Jan25 sales figures aligned with our internal projections for domestic car sales. Our optimistic outlook for the industry anticipates total sales reaching 903,557 units (incl.LCGC) this year. The upcoming automotive show will be pivotal in determining overall first-quarter sales volume, serving as a crucial barometer of domestic consumer demand amidst a climate of uncertainty and economic headwinds. Notably, we expect Electric Vehicles (EVs) to continue playing a significant role in bolstering confidence within the domestic automotive sector. We maintain our overweight rating for the sector