Automotive - New cars Feb25 sales up 16.73% yoy

Automotive - New cars Feb25 sales up 16.73% yoy After a disappointing 2024, Indonesia's national car sales rebounded in February 2025, reaching 72,295 units or a significant 16.73% increase from January. This growth, coupled with a 2.15% yoy rise, offers a hopeful sign following a year where wholesale sales fell 13.9% to 865,723 units, far short of 2023’s mn-plus. Astra International maintained its market dominance with 54% share, selling 38,546 units in February, despite a slight year-over-year dip. However, a substantial month-over-month increase from 34,531 units in January indicates strong momentum. "National wholesale car sales until February reached 134,227 units, with Astra contributing 73,077 units," stated Astra’s Boy Kelana Soebroto. The upcoming Eid holiday and increased community activity are expected to further stimulate demand, providing crucial mobility solutions. (Source : Cnbc Indonesia) Comment : Indonesia's car market sees Feb25 surge, signaling potential recovery. While the 2.15% yoy increase compared to Feb24 is less dramatic, it still signifies positive growth, indicating that the market is moving in the right direction. Astra's leading market share (54%) reinforces its strong position in the Indonesian automotive industry. The large increase in sales from Jan25 to Feb25 from Astra is also a very positive sign. Maintain our overweight stance for the sector with ASII as our pick. Maintain BUY ASII, SOTP-TP of IDR5,850 (7.3x P/E ‘25F).