Toyota is Indonesia's clear market leader, although its market share decreased 3.8 percentage points in March 2013, particularly due to increased Suzuki sales. Through a jointly controlled entity with the Toyota Motor Corporation, Astra International holds the exclusive right to sell Toyota vehicles on the Indonesian market. The country's second most popular car is the Daihatsu, which is also distributed by Astra International. As such, the company holds a powerful position in Indonesia's car market. Mitsubishi cars - the country's third most popular car brand - are distributed by Krama Yudha Tiga Berlian Motors.

Market leaders in Indonesia's car industry:

     Q1-2013¹   Growth (yoy)
   105,222          8.7%
Daihatsu     41,197          5.2%
Mitsubishi     39,576          8.2%
Suzuki     36,237         41.3%

¹ number of units sold

Indonesia has been experiencing an unique and important chapter in its car industry history: the country is transforming from a mere production hub into a major car sales market. Low production costs (due to low wages and cheap land) made Indonesia attractive as a production hub, but with GDP per capita reaching over USD $3,500 in 2012, the country's rapidly increasing middle class has turned into a significant consumer force. Domestic car sales reached a record-high level of over 1.1 million car units in 2012, and has recently attracted increased foreign investment in the nation's car industry.

Last year, Indonesia's central bank tried to limit growth in car sales by introducing a new rule that raised the required minimum down payment for the purchase of automobiles from 10 to 25 percent of the price for commercial cars, and to 30 percent for passenger cars. As around 65 percent of car purchases in Indonesia are made through loans it was estimated to limit car sales. However, last year still recorded record-breaking car sales of over 1.1 million units. Another issue that can impact negatively on Indonesian car sales in the near future is the possible price hike on subsidized fuel, which is currently hotly debated in Indonesia's government circles and media.

   Q1-2012  Q1-2013
  Growth (yoy)
Indonesia's Car Sales
(number of car units)
 250,830  297,785       18.72%
   January  February
Indonesia's Car Sales 2013
(number of car units)
  96,705   103,284   97,796
     2008    2009    2010    2011    2012
Indonesia's Car Sales
(number of car units)
 607,805  486,061  764,710  894,164 1,116,230

Source: Gaikindo