Indonesia’s Best-Selling Car Brands and Models: Market Trends and Consumer Preferences

Indonesia boasts one of Southeast Asia’s largest auto markets. However, recent data show a slowdown: annual vehicle sales fell from about 1,005,802 units in 2023 to roughly 865,723 units in 2024. This decline (~14% year-over-year) brought total sales to their lowest level since the COVID-19 pandemic, as the economy and consumer demand cooled. Multi-purpose vehicles (MPVs) – family-friendly, seven-seat models – still dominate Indonesian roads, accounting for nearly 40% of sales. Sport utility vehicles (SUVs) are also on the rise, expanding from about 17% of the market in 2018 to roughly 24% by 2023. Both segments reflect local tastes for spacious, versatile vehicles.

The market contraction in 2024 was partly due to waning post-pandemic incentives and high prices. The government and industry had previously offered generous tax breaks (PPnBM incentives) to boost sales; for example, by 2022 luxury tax relief was granted only to locally built cars (≥80% Indonesian components), especially budget LCGC models under IDR 200 million. Many of those incentives have since expired, and rising borrowing costs have made customers more cautious. Still, leaders Toyota and Daihatsu (both under the Astra Group) remained strong thanks to their well-known compact MPVs and LCGC cars, which benefitted most from earlier tax breaks. Other brands have seen mixed results: Chinese entrants like Wuling and BYD are growing from a small base, while long-established players (Honda, Suzuki) saw steeper sales declines in 2024.

Top-Selling Brands and Market Shares

The Indonesian market is led by Japanese-owned brands, with Toyota far out in front. In 2024, Toyota sold 288,982 vehicles (33.4% market share), followed by Daihatsu (163,032 units, 18.8% share) and Honda (94,742 units, 10.9% share). Mitsubishi Motors (72,217 units, 8.3%) and Suzuki (66,809 units, 7.7%) round out the top five. Beyond those, other notable brands include Mitsubishi Fuso (light trucks, 27,721 units, 3.2%), Isuzu (26,379 units, 3.0%), and growing foreign makes like Hyundai (22,361 units, 2.6%), Wuling (21,923 units, 2.5%) and BYD (15,429 units, 1.8%). Chinese automakers MG (Motor Guojiao) and Chery have also been ramping up: Chery jumped 124% in 2024 to 9,191 units (1.1% share), and MG surged over 235% to 3,974 units (0.5% share). (See table below for the top 5 brands.)

Most of the major brands saw double-digit declines in 2024. For example, Honda’s sales fell 31.8% and Suzuki’s 17.6%, reflecting a market-wide slump. Toyota and Daihatsu also fell (–14% and –13%), but they still held the lion’s share of volume. Newcomers like BYD have climbed the ranks: BYD vaulted into the top 6 in late-2024 (reaching as high as #6 by volume in some months) as its EV models sold strongly. Wuling (another Chinese brand) also performed well on a smaller scale, with sales only slightly down 6.9% in 2024 despite the overall downturn.

Best-Selling Models

On the model level, Toyota’s Kijang Innova (a 7-seat MPV) has been king of the market. In 2024, the Kijang Innova repeated as the best-selling vehicle in Indonesia with 63,676 units sold (about 7.4% of total sales). It was followed by the Toyota Avanza (55,838 units) and the Daihatsu Sigra (54,709 units). Both of these are compact MPVs popular for families and fleet users. In fourth place came the Honda Brio (51,133 units), a small hatchback, and in fifth the Daihatsu Gran Max Pikap light pickup (42,122 units). Together, these five models accounted for well over a quarter of Indonesia’s total car sales in 2024.

• Toyota Kijang Innova – 63,676 units (best-seller, ~7.4% of market)

• Toyota Avanza – 55,838 units

• Daihatsu Sigra – 54,709 units

• Honda Brio (RS & Satya) – 51,133 units

• Daihatsu Gran Max Pikap – 42,122 units

Toyota’s Kijang Innova MPV (pictured above) has been Indonesia’s top-selling model in recent years. In 2024 it led the market with about 63,700 units (≈7.4% share).

Other models in the top 10 include the Toyota Rush (a small SUV), Toyota Calya (a 7-seat compact), and Mitsubishi Xpander (a popular MPV), although each of these fell in rank in 2024. Notably, Toyota vehicles dominate the model charts: four of the top five (Innova, Avanza, Rush, Calya) are Toyota-branded. The only non-Toyota model in the upper ranks was Honda’s Brio (4th) and the Daihatsu products (Sigra and Gran Max) in 2nd and 5th. New electric models from Chinese brands (like the BYD Seal and Wuling Air ev) have yet to break into the top 10, but they are growing from a low base and beginning to appear in monthly top-20 lists.

Key Factors Behind Brand Success

Several key factors explain why certain brands and models sell well in Indonesia:

• Affordable Pricing and Incentives: Indonesia is a price-sensitive market. Early in the decade, the government’s Low-Cost Green Car (LCGC) program offered steep tax breaks for cheap, fuel-efficient cars assembled locally. Models like the Toyota Avanza, Daihatsu Sigra, and Honda Brio were designed for this segment and benefited from the incentives, making them very affordable to consumers. Even as some incentives expire, companies often price new models to stay within buyers’ budgets or include promotions (e.g. low down-payments or 0% financing) to attract middle-class families.

• Extensive Dealer Networks & After-Sales Service: Brands like Toyota (through PT Toyota-Astra Motor) and Daihatsu (PT Astra Daihatsu Motor) have vast dealership and service networks across Indonesia. Customers trust these networks for maintenance and parts. For example, Astra’s partnership with online used-car marketplace OLX provides trade-in and financing options, making ownership easier. Many Indonesian buyers value long-term reliability and easy access to authorized workshops, so a strong local presence is a big selling point.

• Fuel Efficiency and Operating Costs: With high fuel prices and traffic congestion, Indonesians care about fuel economy and running costs. Small-engine cars (1.0–1.5 L) are popular because they are cheaper to run. Several top models (e.g. Toyota Agya, Daihatsu Ayla, Honda Brio) feature 1.2–1.3 L engines that qualify for tax incentives and offer good mileage. Diesel is mostly used by trucks (Isuzu, Mitsubishi Fuso, Hino) rather than passenger cars. Even among higher-end models (like the Innova or Pajero Sport), modern engines and hybrid options are being introduced to improve efficiency.

• Product Design for Local Needs: Many best-sellers are multi-purpose vehicles (MPVs) that suit Indonesian families. These cars offer seating for 6–7 people, high rooflines for cargo, and robust suspensions for both city and rural roads. They often feature generous air-conditioning and infotainment for comfort. For example, the Innova is marketed as a durable family van, while the Xpander emphasizes space and style. Models like the Wuling Confero (an MPV) and Xiaomi-i Li Auto Sihao (a Chinese MPV) attempt to capture this segment as well. In contrast, traditional sedans have very low share in Indonesia’s market.

• Brand Loyalty and Reputation: Established Japanese brands have built up strong reputations over decades. Toyota, Honda and Mitsubishi, in particular, are associated with reliability and resale value. Many families buy the same brand/model across generations. For instance, the Avanza has been dubbed “mobil sejuta umat” (the people’s million-unit car) because of its ubiquity. It first launched in 2004 as a joint Toyota-Daihatsu project and has since seen multiple generations, garnering trust. Newer brands must overcome this entrenched loyalty through marketing and by matching reliability.

• Local Content and National Pride: While Indonesia has no major global automaker of its own, local production is often emphasized. Many popular models are built in Indonesian factories, which keeps prices lower. Brands advertise their “Made in Indonesia” credentials. For example, Wuling proudly uses the slogan “Built in Indonesia, for You” in its marketing. On the other hand, government support for national brands like Esemka (Indonesia’s first locally-owned car company) has mostly symbolic value: Esemka produces only a few hundred trucks/SUVs a year, nowhere near the scale of international manufacturers. Still, policies requiring high local parts content (usually ≥80%) for tax breaks encourage automakers to source locally and invest in Indonesian plants.

• Financing and Promotions: Many buyers rely on credit. Car companies often offer low-interest loans, trade-in bonuses or tie-in promotions (like free insurance or accessories) during special campaigns. For example, around major holidays such as Idul Fitri (Lebaran) or year-end, manufacturers advertise special deals and even contests (e.g. win an Umrah pilgrimage or gadgets with a car purchase). These promotions can spike sales during those periods.

Local vs International Brands

Almost all major brands in Indonesia are foreign-owned or joint ventures. Japanese companies dominate the landscape through local subsidiaries (usually in partnership with Astra International or other conglomerates). For instance, Toyota-Astra Motor (TAM) and Astra Daihatsu Motor (ADM) are wholly Indonesian companies but are owned by Toyota Motor Corporation (Japan). They develop and sell Toyota and Daihatsu models tailored for Indonesia. Similarly, Mitsubishi Motors Krama Yudha Indonesia and Suzuki Indomobil Motor build SUVs and small cars locally for their brands.

The only truly indigenous marque is Esemka (PT Solo Manufaktur Kreasi), which was born as a vocational school project. It now makes small SUVs and pickup trucks in Central Java, but at very low volumes (on the order of 10–50 units per month). In practice, Esemka has no impact on the mainstream passenger market.

Foreign newcomers from China and Korea have rapidly increased their presence. Chinese brands like Wuling, BYD, MG, Chery, and Maxus are assembling or importing vehicles (many of them electric or hybrids) and positioning them as value alternatives to Japanese cars. Korean brands (Hyundai and Kia) recently entered with government support; Hyundai inaugurated a factory in 2022 and is promoting compact SUVs (Creta) and electric vehicles (Ioniq 5) to gain market share. There is also some American heritage (GM/Opel) and German (Volkswagen used to produce in Indonesia, but now mostly imports).

Local consumers tend to favor international brands with local operations (due to perceived reliability and service). Government policies have favored locally assembled vehicles: for example, a luxury tax incentive in 2021–22 required cars to have ≥80% Indonesian content for full exemption. This rewarded companies like Toyota and Daihatsu that built high-localization models. The policy has partially shifted focus to electrification: recent rules extend incentives to battery-electric vehicles (subject to local component thresholds), benefiting firms like Hyundai (with its factory) and Chinese OEMs investing in local EV plants (e.g. BYD, Wuling).

Consumer Behavior and Preferences

Indonesian car buyers are generally very price-conscious and practical. Surveys show that cost is a major barrier: over 66% of non-owners cite insufficient budget as the main reason to delay buying a car. Even among current owners, around 41% say they hold off on upgrades due to budget constraints, and 61% feel their existing vehicle is still reliable enough. In other words, many Indonesians will not replace a working car unless new models offer a compelling improvement in features or economy. High maintenance costs (25% of respondents) and expensive sticker prices (23%) also discourage quick upgrades.

Because of this, financing options and low entry prices are critical. Buyers are drawn to cars with good fuel efficiency and low running costs. Indonesian consumers also rely heavily on motorbikes: about 85% of potential car buyers still consider a motorcycle their primary transport. This reflects urban traffic congestion and the relatively low cost of two-wheelers. Public transit is secondary for many, so the leap to owning a car (which is 5–10 times more expensive than a motorbike) happens slowly. In fact, 42% of surveyed Indonesians say they have no intention to buy any car in the next year, often because their motorbike or family car is still adequate.

When Indonesians do buy cars, family needs dominate. Common motivations include having more space for family travel (especially during the annual mudik homecoming season) and carrying cargo or passengers for livelihood (small business use). Hence 5-7 seat MPVs and pick-up trucks are popular. There is also a status element: owning a car (even a modest one) is seen as a step up in the social ladder. Consequently, many consumers stick with familiar brands and models that they see as stable and “safe” choices, rather than risk new or niche entrants.

Interest in green vehicles is growing slowly. More buyers are curious about hybrids and EVs – spurred by government targets (2 million EVs by 2030) – but only a small fraction of purchases are electric so far (around 6–7% of new car sales in 2024). Chinese and Korean brands are pushing EVs aggressively with competitive pricing and features, but some consumers still worry about charging infrastructure and battery longevity. Hybrids (like the Toyota Corolla Cross HEV or Mitsubishi Xpander hybrid) are gaining modest traction too, helped by recent tax reductions for hybrid imports.

Notable Marketing Campaigns and Strategies

Automakers in Indonesia use a mix of traditional and digital marketing to reach buyers. Big brands sponsor major auto shows (like GIIAS and IIMS) to launch new models and promotions. For example, in early 2025 Wuling heavily promoted its new EV models (“New Air ev” and “New Cloud EV”) at the Indonesia International Motor Show, even unveiling a futuristic concept called the “Light of ASEAN”. Wuling’s slogan “Built in Indonesia for You” emphasizes local production and technology.

Digital and social media play a growing role, especially for younger consumers. Wuling has become known for viral online campaigns. Its #ThisIsMyEVWay campaign for the compact Wuling Air ev showcased real user stories on social platforms, generating over 15 million views and 500+ user-generated stories. Such campaigns have been credited with boosting test drives and sales for the Air ev. Similarly, Wuling’s marketing often focuses on “wisdom meets style” (a loose translation of “Bijak Pangkal Gaya”) to appeal to cost-conscious buyers who still want a modern car. Wuling also maintains active TikTok and Instagram content aimed at young families and first-time car buyers.

Toyota and Daihatsu traditionally rely on broad-based advertising (TV, billboards, sponsorship of events like soccer or concerts) and national dealer networks. They also run seasonal promotions tied to public holidays; for example, end-of-year “harbolnas” auto sales events and Lebaran bonus-period deals often feature new-model discounts, freebies, or lucky draws (e.g. trips or electronics). Astra group partners (including financial lenders) frequently bundle financing offers with the cars to make purchases more affordable.

New entrants use distinctive angles: BYD markets its EVs on cutting-edge tech and connectivity, emphasizing features (large infotainment screens, long driving range) at relatively low prices. Hyundai has run campaigns highlighting its design and the “K-culture” (K-pop/K-drama) appeal of its models. Mitsubishi often emphasizes ruggedness and 4WD capability (as with the Pajero Sport), while Honda leverages sportiness and efficiency (e.g. through the Civic and City hatchbacks).

In summary, Indonesian car manufacturers compete fiercely on price, product fit, and brand image. They mix traditional dealer outreach with vibrant digital content. As Chinese and Korean brands invest more, consumers will see even more aggressive promotions (especially around EVs and hybrids) in the next few years.

Overall, the Indonesian auto market remains dynamic. Toyota and Daihatsu currently lead by volume thanks to popular MPVs and strong dealer support. However, changing consumer preferences and government policies (favoring green and local industries) mean that other players – both international and domestic – will continue to challenge the status quo. Affordability, fuel economy, and family-friendly features will remain key to success in this fast-evolving market.

Sources: Indonesian automotive sales data and industry analysis for 2023–2024; market research and surveys on consumer behavior; government policy documents on tax incentives; official press releases and marketing case studies.