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The government announced in 2019 that it will be decreasing the luxury tax on some types of premium and luxury cars. Under the new scheme vehicles will no longer be taxed based on their engine capacity but rather on their fuel consumption and carbon emissions.
April 2019 saw sitting president Joko Widodo re-elected following a General Election. The elections – which also included elections for the vice president, members of the People's Consultative Assembly, and members of local legislative bodies – impacted sales of premium and luxury cars in the first-half of 2019 with consumers typically holding back on purchases of cars and homes when there is a General Election.
Due to the poor state of the country’s roads it is expected that Sports Utility Vehicles (SUVs) are expected to continue gaining ground within premium and luxury cars over the forecast period. While sedans are popular with business executives due to the prestige they hold, SUVs are increasingly seen as the more practical option.
BMW led premium and luxury cars in 2018. BMW has a long-standing presence in Indonesia and has a great brand image, not only as a luxury car but also as a sports car for young people.
GAIKINDO Indonesia International Auto Show (GIIAS) has become the biggest showcase for automotive brands. This event is seen as particularly important to manufacturers of premium and luxury cars that are looking to increase brand awareness, build brand image, and attract potential new customers.
Mercedes-Benz led luxury cars in Indonesia at the beginning of the review period, with the brand benefiting for established trust and its long-standing position in the market. The company’s wide distribution network all over Indonesia also supports its strong position in the region, including dealerships in Surabaya and Bandung.
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Discover the latest market trends and uncover sources of future market growth for the Luxury Cars industry in Indonesia with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Luxury Cars industry in Indonesia, our research will save you time and money while empowering you to make informed, profitable decisions.
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Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.