Automotive - Gaikindo targets car sales of 850,000 units in 2026

Automotive - Gaikindo targets car sales of 850,000 units in 2026 The Indonesian Motor Vehicle Industry Association (Gaikindo) estimates that sales of four-wheeled vehicles or more in 2026 will still be around 850,000 units. This condition, according to Gaikindo General Secretary Kukuh Kumara, is the result of a joint evaluation by industry players regarding public purchasing power and the current business climate. "We have agreed to set a target of 850,000 units by 2026," said Kukuh when contacted on Sunday (February 1, 2026). According to Kukuh, the target is still dynamic and can change according to developments in the national automotive market and government policies that could potentially affect the industry. Because right now, the Ministry of Industry and the Ministry of Finance are finalizing a stimulus for the automotive sector to boost public purchasing power again. Entering 2026, Gaikindo hopes that several events, such as automotive exhibitions and new model launches, can drive market recovery after the long Eid holiday. (Source : Kontan) Comment : The outlook for the automotive sector remains flat for the time being. Although government stimulus programs have been introduced, a significant recovery is unlikely to materialize in the near term. Ultimately, our main worry is the broader instability of the current environment. Persistent economic hurdles continue to weigh down the sector, and new challenges are reshaping the landscape. Several key ‘26F story: (1) the continuing EV shift, (2) policy changes to support the industry growth and (3) uninterrupted aggressive dealer promotions. One genuine reason for optimism is the expected drop in benchmark interest rates. As these lower rates eventually trickle down to auto loans, financing should become more affordable, potentially bringing some prospective buyers back into the fold. Our primary concern remains the broader environment. Between ongoing global instability and a domestic market that is "cautiously optimistic" at best, consumer confidence is still fragile. With purchasing power remaining stretched, the industry is bracing for a slow climb rather than a sprint. Maintain Neutral for the sector.