Indonesia Commercial Vehicle Market By Propulsion (ICE, Electric, Hybrid), By Transmission (Automatic, Manual), By Vehicle Type (Truck, Bus/Van), By Region, By Competition, Opportunities & Forecast, 2020-2030F

Market Overview:

Indonesia Commercial Vehicle Market was valued at USD 29.32 Billion in 2024 and is expected to reach USD 46.02 Billion by 2030 with a CAGR of 7.80% during the forecast period. The Indonesia commercial vehicle market is set for growth driven by various key factors. As the country’s infrastructure continues to improve, there is a notable increase in demand for efficient transportation solutions, especially in logistics and construction sectors. For instance, Indonesia is advancing its infrastructure with a USD 26.6 billion 2025 budget, focusing on projects like the Jakarta–Surabaya High-Speed Rail and the USD 35 billion Nusantara new capital development. The government also aims to build 3 million affordable homes annually to boost connectivity and economic growth. The expansion of the road networks, ports, and logistics hubs supports the rise in freight and goods transportation, fostering greater reliance on commercial vehicles. The growing urbanization and rise in the construction of residential, commercial, and industrial complexes also contribute to the demand for heavy-duty vehicles such as trucks and buses. These sectors require efficient transportation for materials, driving the need for a diverse range of commercial vehicles.

Market Drivers

Infrastructure Development

Indonesia’s infrastructure growth fosters improved transportation efficiency, with better roads and logistics hubs enabling faster movement of goods. These advancements support both the long-haul transport of goods and last-mile delivery systems, creating higher demand for commercial vehicles. The road network expansion also drives increased investments in vehicles suitable for new routes. As these projects expand into more remote areas, more vehicles are required to support emerging industries. This creates additional opportunities for commercial vehicle manufacturers and operators. With these enhancements, the transportation sector can meet future demand, ensuring business scalability.  For instance, In 2025, PT Nusantara Infrastructure Tbk (META) plans to spend about $10 million in capital expenditure, mainly for the Elevated Jakarta Outer Ring Road project worth $1.4 billion, plus fixed asset purchases and infrastructure work. Traffic on the MBZ Elevated Toll Road rose 28.27% during the 2024/2025 holidays.

Rising Demand for E-commerce and Logistics

E-commerce’s rapid growth necessitates a dependable transportation network for efficient product delivery. Logistics providers need a variety of vehicles to cater to diverse customer needs, from last-mile delivery vans to long-distance trucks. The shift toward more sustainable logistics operations, including using smaller, energy-efficient vehicles, is also evident. Furthermore, businesses are increasingly adopting vehicle-sharing models for cost efficiency, which contributes to the broader vehicle demand. These trends ensure a consistent need for new vehicle types and delivery methods, reinforcing the strength of the commercial vehicle market. As consumer expectations rise, the demand for faster delivery times continues to surge, making it essential for logistics companies to operate highly efficient fleets. To meet these expectations, businesses are relying on technologies that optimize routes and monitor fleet performance in real-time. This trend will further drive demand for vehicles capable of supporting these innovative logistics solutions. The growing demand for reliable, fast, and sustainable delivery methods reinforces the continuous need for commercial vehicles across various categories. For instance, as per the International Trade Association, Indonesia led the ASEAN region in e-commerce revenue in 2022, generating USD 51.9 billion (approximately IDR 778.8 trillion). This accounted for 52% of the region’s total e-commerce market value of USD 99.5 billion, highlighting Indonesia’s dominant position and robust digital commerce ecosystem within Southeast Asia.

Urbanization and Industrial Growth

The increased urban population heightens demand for goods and services, which can only be met through reliable commercial transport. Industrial growth, such as the expansion of manufacturing and retail sectors, directly contributes to this. As urban centers grow, the demand for services like construction materials transportation, waste management, and public transport increases. This leads to a higher demand for commercial vehicles across various categories, including trucks, buses, and smaller delivery vehicles. The synergy between urbanization and industrial growth is key to the long-term stability of the commercial vehicle market. Industrialization fuels the demand for efficient transport solutions, as raw materials and finished goods need to be moved in large volumes across cities. The urbanization trend also increases the need for vehicles that are tailored for city logistics, such as compact delivery vans and small buses. These vehicles are well-suited for navigating congested urban areas, ensuring that businesses and industries can deliver products promptly while maintaining the flow of operations.

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Key Market Challenges

High Initial Investment Costs

The high upfront cost of purchasing commercial vehicles remains a significant challenge, particularly for smaller businesses. While long-term savings from efficient fuel use and lower maintenance costs are clear, many companies struggle with initial capital outlays. Financing options, including loans or leasing, may help, but the terms and conditions are often restrictive for smaller firms. This financial barrier hinders the growth of smaller fleet owners who wish to invest in modern, efficient vehicles. As these businesses are often the backbone of the logistics sector, addressing the cost issue would lead to broader market expansion. Access to more flexible financing solutions could encourage smaller firms to modernize their fleets, leading to more competition and better service in the commercial vehicle market. The financial constraints experienced by small businesses are a critical factor that needs to be addressed for long-term market sustainability and growth.

Limited Skilled Workforce

A shortage of skilled labor is preventing the full potential of Indonesia's commercial vehicle market from being realized. The evolving needs of the industry, including the increasing adoption of electric and hybrid vehicles, require specialized knowledge and training. Mechanics and drivers skilled in advanced vehicle systems are in high demand but short supply. This creates operational challenges for companies looking to maintain or expand their fleets. Additionally, the lack of training programs tailored to the transportation sector’s future needs limits the ability to build a skilled workforce capable of supporting the growing demand for modern vehicles. Companies that struggle to find qualified personnel may face higher operational costs and slower fleet turnover, limiting their ability to compete in the market. Investing in workforce development and offering targeted training programs would help address this gap, ensuring that the commercial vehicle sector can support technological advancements and meet growing demand.

Key Market Trends

Adoption of Electric Commercial Vehicles

The increasing emphasis on sustainability is driving the adoption of electric commercial vehicles in Indonesia. As governments and businesses alike seek to reduce carbon footprints, electric vehicles (EVs) offer an eco-friendly alternative to traditional diesel trucks and buses. With lower operating costs primarily from fuel savings and reduced maintenance requirements electric vehicles are becoming a more attractive option for fleet operators. The introduction of more EV models with longer ranges and faster charging capabilities is expected to accelerate their adoption. The future of commercial vehicles may see a significant shift toward electric options, offering operational savings and environmental benefits for fleet operators. As charging infrastructure improves, EVs could dominate the market in the coming years, contributing to greener and more sustainable transportation solutions. For instance, In July 2024, Hyundai Motor Group and LG Energy Solution launched Indonesia’s first EV battery cell plant, HLI Green Power, in Karawang with a 10 GWh annual capacity, enough to power over 150,000 electric vehicles.

Telematics and Fleet Management Solutions

The rise of telematics and fleet management solutions has revolutionized how commercial vehicles are operated in Indonesia. These technologies allow for real-time tracking of vehicles, providing businesses with valuable insights into driver behavior, fuel consumption, and route optimization. The ability to monitor and manage fleets remotely enhances operational efficiency, reduces costs, and increases safety. In the future, further integration of AI and machine learning will offer predictive maintenance, allowing companies to address potential issues before they result in costly repairs. This trend significantly improves fleet performance and helps businesses stay competitive in a growing market. Advanced telematics systems will also play a vital role in reducing operational costs by streamlining fleet operations and ensuring that vehicles are used optimally. As fleet management technologies continue to advance, businesses will benefit from greater operational visibility and more efficient resource allocation, enhancing the commercial vehicle market’s overall performance.

Segmental Insights

Vehicle Type Insights

In 2024, trucks dominated the commercial vehicle market in Indonesia. This is primarily due to the increasing demand for logistics and transportation services, which are essential for the country’s expanding industrial and e-commerce sectors. Trucks, particularly heavy-duty models, play a critical role in transporting goods over long distances, ensuring that products reach various regions of the country efficiently. With Indonesia's growing infrastructure and road network development, trucks are vital for moving raw materials, consumer goods, and industrial products. The shift toward urbanization and the rising demand for construction materials also contribute to the higher demand for trucks, particularly those designed for specialized tasks such as transporting construction equipment or bulk goods.

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Region Insights

In 2024, Java dominated Indonesia’s commercial vehicle market due to its dense population, industrial hubs like Jakarta, Surabaya, and Bandung, and well-developed infrastructure. The island’s high concentration of manufacturing, logistics, and retail activities drives strong demand for trucks and delivery vans to support supply chains and e-commerce growth. Efficient road networks and ports enhance goods movement, fueling the need for both long-haul and last-mile transport solutions. With major logistics firms operating fleets across the region, Java’s strategic economic role ensures it remains the leading market for commercial vehicle sales and operations nationwide.

Recent Developments

• In 2025, Wuling will launch a locally assembled commercial EV in Cikarang, West Java, targeting Indonesia’s logistics sector and supporting the country’s EV transition.
• In 2024, TransJakarta added 200 electric buses, raising its EV fleet to 300, aiming to cut 420,000 tons of carbon emissions yearly and support Jakarta’s 2050 net-zero target.
• On May 29, 2025, REPT BATTERO signed an MoU with Indonesia’s Bakrie & Brothers Group to supply battery systems for over 3,000 electric buses and trucks. Production will align with local content rules and support Indonesia’s 2060 net-zero goal through domestic EV manufacturing and infrastructure development.
• At PEVC 2024, PT Mobil Anak Bangsa (MAB) partnered with Telkomsel to boost EV production and integrate IoT-based telematics for improved fleet management, supporting Indonesia’s green mobility goals

Key Market Players

• Mitsubishi Motors Krama Yudha Indonesia
• PT Astra Daihatsu Motor
• PT HINO Indonesia
• Suzuki Indonesia
•  PT. Tata Motors Indonesia
• UD Trucks Corp
• UD Trucks Corp
• Isuzu Astra Motor Indonesia
• PT Daimler Commercial Vehicles Indonesia
• PT. Maxindo Renault Indonesia

Report Scope:

In this report, the Indonesia Commercial Vehicle Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         Indonesia Commercial Vehicle Market, By Propulsion:

o    ICE

o    Electric

o    Hybrid

·         Indonesia Commercial Vehicle Market, By Transmission:

o    Automatic

o    Manual

·         Indonesia Commercial Vehicle Market, By Vehicle Type:

o    Truck

o    Bus/Van

·         Indonesia Commercial Vehicle Market, By Region:

o    Java

o    Sumatra

o    Sulawesi

o    Kalimantan

o    Rest of Indonesia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Indonesia Commercial Vehicle Market.

Available Customizations:

Indonesia Commercial Vehicle Market report with the given market data, TechSci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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