JAKARTA – The motor vehicle market in Indonesia has shown signs of recovery, at least until mid-2024.

However, major events like GIIAS 2024 have not yet made a significant impact on the automotive industry and its supporting sectors, according to a report by PT Ina Sekuritas Indonesia.

PT Astra International Tbk (ASII) continues to dominate the Low Cost Green Car (LCGC) and Electric Vehicle (EV) segments. ASII controls 80% of the LCGC market share in Indonesia.

According to data from the Association of Indonesian Automotive Industries (GAIKINDO), four-wheeled vehicle (4W) wholesale sales decreased by 16% year-on-year ( ) in 2024, totaling 633,000 units.

Meanwhile, two-wheeled vehicle (2W) sales remained resilient, rising by 3.3% YoY to 4.3 million units sold. Electric vehicle sales saw an even higher surge, increasing by 170% YoY to 27,500 units.

BYD, a newcomer in Indonesia's automotive industry, has garnered attention in the electric vehicle market. The Chinese manufacturer shipped 1,000 units of its latest electric vehicle, launched in early 2024. BYD has also expanded its dealership network to 50 locations.

These growth trends certainly brighten the prospects for motor vehicles, particularly electric vehicles, in 2025. However, the industry is expected to face challenges this year, as the government imposes higher motor vehicle taxes and VAT.

"Nevertheless, the government is considering tax incentives for hybrid vehicles, which accounted for 6.5% of domestic 4W sales in October 2024," Ina Sekuritas noted in its report.

Ina Sekuritas recommends ASII and PT Dharma Polimetal Tbk (DRMA) stocks, with target prices of IDR 1,120 and IDR 6,175, respectively. (KR/ZH)

Check out the full report here.