According to our previous study in 2024, we discovered that more than half of the population (63%) in Indonesia are planning to buy a new car [1].
However, as we enter 2025, the automotive market in Indonesia continues to show intriguing patterns. Influenced by both financial readiness and regulatory changes, Indonesian consumers’ plans to purchase new cars are shifting. Check out our findings in the infographic below.
In this research, we figured out that now, only 56% of Indonesians are planning to purchase a new car. A contributing factor may be the government’s decision to increase VAT on luxury goods, including cars, to 12% this year.
Furthermore, this survey also highlights four primary reasons why Indonesians plan to buy new vehicles:
- Comfortable Private Transportation (58%) – A majority of respondents prefer the convenience and reliability of owning a car that can be used anytime.
- Traveling with Family (29%) – Families see new cars as a necessity for safe and comfortable trips.
- Work or Earning Money (14%) – Vehicles are being purchased as tools for income generation, such as for ride-hailing or delivery services.
- Prestige (1%) – A small portion of buyers prioritize owning a car for status or image purposes.
Financial Preparedness Among Car Buyers
This study also explored how well-prepared Indonesians are financially to buy cars. Encouragingly, 84% of potential buyers have already set aside the necessary budget. This readiness spans across socioeconomic strata:
- SES Lower: 83% prepared
- SES Middle: 86% prepared
- SES Upper: 88% prepared
However, 16% of respondents reported having no budget or financial preparation for a car purchase, indicating room for improvement in financial literacy or planning.
What These Insights Mean for the Automotive Industry?
These findings provide valuable insights for car manufacturers and dealers. With financial readiness high among potential buyers, tailored marketing strategies and financing options could help convert interest into sales. Additionally, given the 12% VAT hike, offering promotions or discounts might mitigate buyer hesitation and maintain momentum in the market.
The desire for new cars remains strong in Indonesia, driven by practicality and family needs. As 2025 unfolds, understanding consumer motivations and addressing financial hurdles will be key for businesses in the automotive sector.
For more information, contact us at partners@snapcart.global.
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