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The largest number of cars in use was measured in 2023 with around **** million units. This figure did not come out of nowhere, in fact, it reflects the constant expansion of the automotive sector in Indonesia.

The Indonesian automotive sector

Despite the fossil fuel subsidy reductions in 2020, the automotive sector is still on the rise; passenger car sales have almost tripled between 2006 and 2022, resulting in Indonesia becoming the largest automotive market in Southeast Asia. This development is mainly driven by the growing middle class, as well as the fact that owning a car is seen as a significant status symbol for many Indonesians. 

Successful car brands in Indonesia

In Indonesia, Japanese automakers dominate the market and held a combined market share of over ** percent. In 2023, Toyota ranked first with a market share of almost ** percent, followed by Daihatsu and Honda with about **** and **** percent respectively. The Japanese brands have optimally adapted to the needs of Indonesian customers with their models available on the market. Small and medium-sized "Sport Utility Vehicles” (SUV) and "Multi-Purpose vehicles" (MPV) with simple but robust technology at reasonable prices are in demand. They offer enough space for families and are better prepared for bad roads or floods because of their higher ground clearance.