Research Overview

In 2020, Indonesia’s automotive total industry volume (TIV) dropped by 48.4%, compared to 2019, with only 532,030 units being sold. The passenger vehicle (PV) segment remained dominant with 73.1% market share. The economic growth for 2020 was the weakest since the 1998 Asian financial crisis. Factors impacted by the COVID-19 pandemic include Gross Domestic Product (GDP) growth, purchasing power, and the automotive industry development.

The largest contribution to passenger car sales was from segments with products priced at IDR 250 million and below, which were mainly the 4X2 and LCGC segments. The 4X2 segment’s slight growth has been supported by new model releases from top-selling brands, which appeals to the less-affected upper middle income group buyers. This is comparable to low cost green car (LCGC) segment that had no new models or variants introduced, and mainly catered to lower middle income groups with spending restrained during the pandemic.

In the commercial vehicle (CV) segment, pick-up maintained sales with sustained demand in the logistics and eCommerce market. Bus demand was limited with strict inter-provincial travel restrictions during the year’s COVID-19 pandemic, and heavy-duty vehicles find staggering decrease due to decline in construction activities.