Indonesia Expects Car Production to Reach 850,000 Units

Indonesia's automotive industry is on track to surpass 850,000 units in national car production for 2026, according to Industry Minister Agus Gumiwang Kartasasmita. This optimistic projection follows a strong first semester, which saw 615,000 units produced, a figure the minister deems realistic for achieving the annual target.

The minister highlighted that this performance signifies a crucial shift for the national automotive sector, moving from a market-driven model to one centered on production. Car production in the first half of 2026 rose by 11.3% compared to the same period last year. Concurrently, wholesale car sales experienced a notable increase of 15.9% annually, reaching 436,000 units.

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Indonesia is in the process of transitioning from initially being a market base to a production base.

Despite this positive momentum, Agus pointed out that Indonesia's car ownership rate remains significantly lower than in neighboring countries. With only 19 cars per 1,000 people, compared to Thailand's 275 and Malaysia's 490, the minister sees substantial room for domestic market expansion. He noted that a modest increase in ownership could generate demand for approximately 280,000 additional vehicles, a figure representing nearly a third of the current domestic market.

Toyota continues to lead Indonesian car manufacturing, producing 268,528 units in the first semester, an increase of 9.5% from the previous year. Mitsubishi Motors followed with 93,558 units, and Daihatsu secured third place with 73,065 units produced during the same period.

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That number is almost one-third of our entire domestic market today.