Indonesia, with a population exceeding 275 million (2020 Census), is the fourth most populous country globally. Despite this vast population, car ownership remains relatively low, with only around 82 cars per 1,000 people. However, with a GDP per capita of $5,000 and an annual economic growth rate surpassing 5%, Indonesia presents significant growth potential.


In 2013, Indonesia's car sales peaked at 1.22 million units, a milestone that has yet to be surpassed in the last decade. Instead, the market has stabilised, with annual sales fluctuating between 900,000 and 1 million units.


Car sales by price segments in 2023

Examining the 2023 car sales data reveals interesting insights into the Indonesian automotive market's structure. The market can be broadly divided into four price segments:


  1. Cars priced under IDR 235 million (under $14.4k USD): This segment accounts for approximately 30.41% of the market share.
  2. Cars priced between IDR 235 million and IDR 335 million ($14.4k – $20.5k USD): This is the largest segment, dominating the market with a 38.46% share.
  3. Cars priced between IDR 335 million and IDR 435 million ($20.5k – $26.7k USD): This segment covers only 15.88% of the market.
  4. Cars priced above IDR 435 million (above $26.7k USD): The remaining 15.25% of the market falls into this higher price category.


Navigating Indonesia automotive market - Graph


Market dynamics and model availability

A closer look at the number of models available in each price segment reveals notable disparities:

  • Under IDR 235 million: 24 models are competing in this segment.
  • IDR 235 – 335 million: This segment, despite having the largest market share, has 37 models available.
  • IDR 335 – 435 million: 32 models are vying for a smaller market share, indicating intense competition. Recently, more competitors from China have entered this segment, contributing to a 'red ocean' market scenario.
  • Above IDR 435 million: This high-end segment also faces significant competition, though fewer models are available compared to the mid-range segment.

The saturated middle: Chinese brands' focus

Interestingly, many Chinese automotive brands such as Wuling, Chery and BYD have chosen to enter the Indonesian market by targeting the IDR 335 – 435 million segment. This segment, while significant, represents only 15.88% of the market share. The influx of Chinese competitors has intensified competition, creating a highly saturated and competitive environment.


Missed opportunities in the lower segments

Despite the intense competition in the mid-range segment, the lower-end market (under IDR 235 million) offers relatively fewer models. This segment, along with the IDR 235 – 335 million range, accounts for over 69% of total sales volumes. However, Chinese brands have not significantly focused on this less saturated and high-potential segment.


Opportunities for market entry

The Indonesian market is predominantly dominated by cars priced below IDR 335 million. Despite the high competition in the mid-range segment, the lower-end market presents a potential opportunity for new entrants. Brands looking to penetrate the Indonesian market could consider targeting this less saturated segment to capture a significant share. One example we have seen of brands entering the market at this lower price point is NETA who have entered the market in the more affordable and less competitive < IDR 335 million segment. They have been able to achieve this through the introduction of a completely knocked down (CKD) model resulting in reduced import taxes.



The Indonesian automotive market presents a unique landscape characterised by significant growth potential and diverse competitive dynamics. While Chinese brands have intensified competition in the mid-range segment, the lower price segments remain underexploited. With a substantial portion of the market concentrated in these lower price segments, there are ample opportunities for automotive brands to thrive. By strategically positioning themselves in the less saturated lower price segment, new entrants can effectively tap into Indonesia's expanding market and contribute to its automotive growth trajectory.


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