🚗🎪 Indonesia International Motor Show 2026: Can new product launches boost sales in the country?
Automakers, brands offer various new products and services to attract more customers
🎯 The Main Takeaway
The highly anticipated Indonesia International Motor Show (IIMS) 2026 returned from February 5 to 15 at JIExpo Kemayoran, Jakarta, reaffirming its status as one of the country’s most prestigious annual automotive events.
Carrying the theme “Your Infinite Autotainment Experience,” the event aimed to provide a platform for all automotive stakeholders to collaborate, drive innovation, promote sustainable development, and create mutual benefits for the industry.
📡 Why It’s On Our Radar
According to the Ministry of Industry, the automotive industry is one of the key drivers of Indonesia’s manufacturing sector, with the following performance:
🚗 Four-wheel vehicles: The industry operates 41 factories with a total production capacity of 2.59 million units per year. It employs 69,390 workers and has attracted IDR 163.75 trillion in investment.
🛵 Two- and three-wheel vehicles: The industry has 82 factories with investments totaling IDR 30.47 trillion. It employs 30,310 workers and has an annual production capacity of 11.2 million units.
📉 However…
The Indonesian Automotive Industry Association (Gaikindo) reported that automotive sales in Indonesia experienced a decline in 2025, due to weakening demand in the industry:
⬇️ Wholesales: Declined by 7.2%, from 856,723 units in 2024 to 803,687 units in 2025.
⬇️ Retail sales: Fell by 6.3%, from 889,680 units in 2024 to 833,692 units in 2025.
Moreover, Indonesia’s car ownership ratio stands at 99 per 1,000 people, which remains relatively low compared to other ASEAN countries.
“This was caused by a decline in purchasing power, while at the same time new brands entered the market, including many newly launched electric vehicles with highly affordable prices.”
Jongkie Sugiarto, Chairman of Gaikindo
📈 Even So…
Some specific products recorded positive performance, including:
🚙 Complete Built-Up (CBU) exports: Increased by 9.7%, from 472,194 units in 2024 to 518,212 units in 2025.
🔋 Battery EV wholesales: Surged by 141%, from 43,188 units in 2024 to 103,931 units in 2025.
🔋⛽ Hybrid EV wholesales: Rose by 10%, from 59,903 units in 2024 to 65,943 units in 2025.
🔌 Plug-in Hybrid EV wholesales: Jumped significantly by 3,775%, from 136 units in 2024 to 5,270 units in 2025.
🚗 LCGC wholesales: Plunged by 30.6%, from 178,780 units in 2024 to 122,686 units in 2025.
Overall, while Indonesia’s overall automotive sales declined in 2025, strong growth in EVs and CBU exports highlighted a shifting market trend toward electrified vehicles, despite a sharp drop in the LCGC segment.
“The trend shows a significant shift toward more environmentally friendly vehicles, in line with the government’s commitment to achieving net zero emissions by 2060. For the manufacturing sector, we have set an even earlier target of reaching net zero emissions by 2050—ten years ahead of the national goal.”
Agus Gumiwang Kartasasmita, Indonesian Minister of Industry
⚠️ Why It Matters
According to Statistics Indonesia and the Ministry of Industry, the manufacturing sector — including the automotive industry — makes a significant contribution to Indonesia’s economy in several key areas:
📊 GDP: Manufacture sector contributed 19.07% to Indonesia’s GDP in 2025.
📈 Growth: The sector grew by 5.3% in 2025, higher than its 4.43% growth in 2024, and exceeding the national GDP growth rate of 5.11% in 2025.
🚢 Exports: Indonesia’s manufactured product exports reached USD 227.10 billion in 2025, marking a 14.47% increase compared to 2024, and accounting for 80.27% of total national exports.
💼 Investment: Investment in the sector reached IDR 552 trillion from Q1 to Q3, accounting for 38.49% of total investment during the period.
👷 Workforce: The sector employed around 20.31 million workers as of August 2025, and 13.8% from the national workforce.
🔍 What’s Inside the Event
Several key facilities were available throughout the 11-day event, including:
🎪 Main exhibition: A total of 62 local and international brands (36 car brands and 26 motorcycle brands) took part in the event.
🔧 Supporting exhibition: Various supporting features were also showcased, including spare parts, apparel, financing services, and insurances.
🏁 Test drive arena: Visitors can take exclusive test drives and test rides of the displayed products before deciding to purchase them for daily use.
🎤 Entertainment: A lineup of well-known Indonesian performers entertained visitors. Meanwhile, drifting, padel, and a mini golf arena were also available for sports enthusiasts.
“This reflects the high level of industry confidence and the strong potential of Indonesia’s automotive market.”
Daswar Marpaung, President Director of Dyandra Promosindo
💡 What to Expect
IIMS 2026 is expected to be a catalyst to boost automotive sales in the country, with several targets to be achieved:
🧑🤝🧑 Visitors: At least 579,337 visitors in total during the 11-day event.
💵 Transactions: Over IDR 8 trillion in total transactions by the end of the exhibition.
📊 What’s at Stake
Automakers are implementing diverse strategies to compete with rivals, including:
🇺🇸 Ford RMA: Focuses on world-class product and service innovations that are relevant to customers’ mobility needs in urban, sports, and industrial segments.
“Looking ahead in 2026, we are launching a massive expansion roadmap.” (Roelof Lamberts, Ford RMA Regional Director)
🇰🇷 Hyundai Motors Indonesia: Focuses on innovation and technology development, especially in the EV ecosystem, to deliver more premium products that support customers’ mobility.
“Since 2020, the company has invested approximately USD 3 billion to support local manufacturing, innovation, and the development of a complete EV ecosystem.” (Kenny Lee, President Director Hyundai Motors Indonesia)
🇮🇩 Indomobil eMotor International: Offers affordable, safe, and comfortable electric bikes as eco-friendly mobility solutions for individuals and businesses.
“We continue to educate the public that electric motorcycles are more cost-efficient in terms of fuel, maintenance, and annual taxes.” (Pius Wirawan, CEO Indomobil eMotor Internasional)
🇻🇳 VinFast Indonesia: Focuses on accelerating the shift to green energy and technology while enhancing customer service to boost EV sales.
“Since entering Indonesia, we have been committed to making EVs accessible to everyone.” (Kariyanto Hardjosoemanto, CEO Vinfast Indonesia)
🇨🇳 Wuling Motors: Focuses on developing new technologies to produce higher-standard and more efficient products.
“We have developed and produced locally manufactured vehicles.” (Arif Pramadana, Vice President Wuling Motors Indonesia)
🏡 Why This Hits Home
Indonesia, home to more than 280 million people, represents a vast potential market and investment for the automotive industry, and has set several key targets:
✅️ The national sales target is set at a minimum of 850,000 units, representing a 5.4% increase over the 2025 target.
✅ Indonesia aims to reach net-zero emissions by 2060 and is currently accelerating the transition by focusing on the development of green energy.
✅ Indonesia has the largest nickel reserves in the world, with around 55 million tons in total, making the country well-positioned to produce EV batteries and ecosystems.
✅ Indonesia has the ambition to become a global hub for EV production and supply chain, aiming to produce 600,000 EV units by 2030, and 1 million EV units by 2040.
🌍 The Regional Stake
IIMS is expected to generate significant regional impacts for Indonesia and beyond:
🇮🇩 For Indonesia: The event can strengthen Indonesia’s competitiveness and position as a key player in the regional automotive sector, particularly in EV production, sales, manufacturing hubs, and exports.
🏭 For Automakers: The exhibition provides a strategic platform for automakers to promote both their existing and newly launched products, as well as services to customers from Indonesia and other countries.
🧭 Beyond the Headlines
Malaysia led car sales in Southeast Asia last year with 820,752 units sold, followed by Indonesia with 803,687 units, and Thailand with 621,166 units.
IIMS has continued to deliver consistent growth over the past three years, achieving transaction values of IDR 5.3 trillion in 2023, IDR 6.7 trillion in 2024, IDR 8 trillion in 2025, and total transactions in 2026 have not yet been released by the organizer.
🔎 Need More Angles?
CNBC Indonesia Bos Gaikindo Ungkap Biang Kerok Penjualan Mobil RI Turun 7% di 2025
Gaikindo Penjualan Mobil Menutup 2025 dengan Kinerja Positif
(NGO/LAN/ELS)
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