Many news reports said that people in 2024, Indonesians prefer to buy used cars instead of the new ones. Hence, Snapcart conducted research to discover this phenomenon further. And by involving 1.323 respondents in 21 – 22 November 2024, we found some intriguing things, as represented in the infographic below.
Key Findings
1. Preference for New Cars
- 63% of Indonesians are planning to buy a car, and 81% of these potential buyers are more interested in purchasing new cars rather than used ones.
- Only 19% of car buyers are considering used cars.
2. Demographics of New Car Buyers
- Interest in new cars is particularly strong among individuals in both the SES (Socioeconomic Status) Upper and SES Lower groups:
- SES Upper: 69% plan to buy a new car.
- SES Middle: 58% plan to buy a new car.
- SES Lower: 64% plan to buy a new car.
- Notably, only 31% of respondents reported no intention of purchasing a car.
3. Existing Car Ownership
- Over half (55%) of those planning to buy new cars already own at least one vehicle.
- Among SES groups, the breakdown of existing car ownership is as follows:
- SES Upper: 72% own one car, 16% own two cars, and 6% own three cars.
- SES Middle: 75% own one car, 15% own two cars, and 8% own three cars.
- SES Lower: 74% own one car, 19% own two cars, and 4% own three cars.
- Among SES groups, the breakdown of existing car ownership is as follows:
Why Are Indonesians Buying Cars?
Indonesians are motivated to purchase cars for a variety of reasons:
- 31% want to accommodate the growing needs of their families.
- 25% aim to replace their old cars with newer models.
- 18% aspire to expand their car collection.
- 9% seek a more convenient and safe mode of transportation.
- 9% want to gift a car to a loved one.
- 7% cited other reasons for their purchase.
Implications for the Automotive Market
The findings suggest a robust demand for new cars, particularly among SES Upper and Lower groups. Automakers and dealers should focus on catering to this demand by:
- Offering financing options to attract a broader range of buyers.
- Highlighting features like safety, convenience, and family-oriented designs.
- Creating marketing campaigns that resonate with specific SES groups’ aspirations and lifestyles.
With over 63% of Indonesians actively planning to buy a car, the automotive market in Indonesia appears poised for growth, driven by a strong preference for new vehicles and a variety of personal and family-oriented motivations.
For more information, contact us at partners@snapcart.global.
