Indonesia Passenger Vehicles HS8703 Export Data 2025 Q2 Overview

Indonesia Passenger Vehicles (HS 8703) 2025 Q2 Export: Key Takeaways

Indonesia's Passenger Vehicles (HS Code 8703) export in 2025 Q2 reveals a high geographic concentration, with the Philippines dominating 26.89% of export value, signaling reliance on mass-market demand in ASEAN. The presence of niche high-value markets like Timor-Leste suggests diversified product grades, while rising exports indicate a growing trend, as reported by ANTARA News. This analysis, covering 2025 Q2, is based on cleanly processed Customs data from the yTrade database.

Indonesia Passenger Vehicles (HS 8703) 2025 Q2 Export Background

Indonesia Passenger Vehicles (HS Code 8703), defined as motor vehicles for transporting people, are a cornerstone of global automotive trade, with steady demand from consumer and commercial sectors. In 2025 Q2, Indonesia introduced a 0% import duty on electric vehicles under HS Code 8703 to boost EV adoption, a move detailed in Assegaf Hamzah & Partners. This policy shift highlights Indonesia’s growing role in vehicle exports, supported by rising global demand and streamlined trade classifications, making it a key player in the 2025 automotive market.

Indonesia Passenger Vehicles (HS 8703) 2025 Q2 Export: Trend Summary

Key Observations

Indonesia's Passenger Vehicles HS Code 8703 Export in 2025 Q2 demonstrated robust growth, with a notable spike in June's unit price to 15.41 USD/kg, driving a significant quarter-over-quarter increase in export value.

Price and Volume Dynamics

Comparing Q2 to Q1, export value rose approximately 30% to 1.77 billion USD, while volume increased by about 11% to 149.4 million kg. The sharp unit price jump in June—up over 50% from May—suggests a shift towards higher-value vehicles, such as electric models, which often see increased demand in mid-year due to seasonal auto sales cycles and new model launches. This aligns with typical industry patterns where Q2 exports benefit from strengthened global demand and production ramp-ups.

External Context and Outlook

The unit price volatility and overall growth can be partly attributed to Indonesia's evolving policy landscape, including the anticipated 0% import duty on battery electric vehicles under HS Code 8703 [Assegaf Hamzah & Partners], effective from September 2025. This incentive likely encouraged domestic manufacturers to focus on premium EV exports, boosting average prices in Q2. Looking ahead, sustained export momentum for Indonesia Passenger Vehicles will depend on global EV adoption trends and potential policy extensions beyond 2025.

Indonesia Passenger Vehicles (HS 8703) 2025 Q2 Export: HS Code Breakdown

Product Specialization and Concentration

In 2025 Q2, Indonesia's export of Passenger Vehicles under HS Code 8703 is heavily concentrated in one sub-code: vehicles with spark-ignition engines of 1000-1500cc capacity (87032259), which holds over half the value share and weight share. Its unit price of 9.84 USD per kilogram aligns with most other sub-codes, confirming its role as the volume leader. An extreme price anomaly exists for compression-ignition engines over 2500cc (87033380) at 1612.32 USD per kilogram, which is isolated from the main analysis due to its outlier status.

Value-Chain Structure and Grade Analysis

The non-anomalous sub-codes fall into three groups: spark-ignition vehicles (e.g., under 1000cc or 1500-3000cc), compression-ignition vehicles (e.g., 1500-2500cc), and hybrid vehicles, all with unit prices between 8.42 and 13.16 USD per kilogram. This tight range indicates a trade in differentiated manufactured goods at similar value-add stages, not fungible bulk commodities linked to indices, with variations based on engine type and capacity rather than fundamental grade differences.

Strategic Implication and Pricing Power

Exporters should leverage the dominant sub-code's scale for cost advantages, but diversify into hybrid and other engine types to capture niche markets. Indonesia's rising car exports, as supported by [ANTARA News], suggest sustained demand, though pricing power may be competitive given the uniform unit prices across most categories. Focus on high-volume models while exploring opportunities in evolving segments like electric vehicles.

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Indonesia Passenger Vehicles (HS 8703) 2025 Q2 Export: Market Concentration

Geographic Concentration and Dominant Role

In 2025 Q2, Indonesia's export of Passenger Vehicles under HS Code 8703 was highly concentrated, with the Philippines accounting for 26.89% of the total export value and 32.44% of the weight, making it the dominant market. The lower value ratio compared to weight ratio suggests that exports to the Philippines consist of vehicles with a lower unit value, likely larger or utility-focused models, which is common for manufactured goods like passenger vehicles where product grade varies by market demand.

Partner Countries Clusters and Underlying Causes

The top export partners can be grouped into two clusters: first, high-volume markets like the Philippines, Vietnam, Mexico, and Saudi Arabia, which show strong frequency and weight shares, indicating robust demand for mass-market vehicles, possibly due to geographic proximity and established trade routes in Southeast Asia and beyond. Second, niche high-value destinations like Timor-Leste, with a value ratio of 14.65% but only 0.39% weight, point to exports of premium or specialized vehicles, likely driven by specific regional needs or luxury market segments.

Forward Strategy and Supply Chain Implications

For manufacturers and exporters, the geographic patterns suggest prioritizing expansion in high-volume ASEAN and Middle Eastern markets while cautiously exploring high-value niches. According to ANTARA News, car exports from Indonesia are rising, reinforcing the opportunity to leverage existing supply chains for cost efficiency and market penetration in 2025 Q2 and beyond (ANTARA News).

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Indonesia Passenger Vehicles (HS 8703) 2025 Q2 Export: Buyer Cluster

Buyer Market Concentration and Dominance

The Indonesia Passenger Vehicles Export 2025 Q2 market for HS Code 8703 is extremely concentrated, with a single segment of buyers accounting for nearly all trade value. In Q2 2025, buyers who purchase frequently and in large volumes dominated, representing 99.95% of the total export value. This group includes major automotive manufacturers like PT Mitsubishi Motors Krama Yudha Indonesia and Honda Prospect Motor, indicating that the market is characterized by high-value, repetitive transactions with a few key players.

Strategic Buyer Clusters and Trade Role

The remaining three segments of buyers play minor roles. Buyers with high value but low frequency, such as embassies or specialized importers, contribute minimally and likely represent one-off or diplomatic purchases. Those with low value and high frequency might be smaller dealers or service providers handling occasional small orders. The low value and low frequency group could include irregular buyers or those dealing with niche markets, but their impact is negligible on overall trade.

Sales Strategy and Vulnerability

For exporters in Indonesia, the strategy should focus intensely on maintaining relationships with the dominant high-volume buyers to secure stable revenue. The high dependency on a few clients poses a risk if market conditions change, but opportunities exist in leveraging temporary tariff incentives, such as the 0% import duty on electric vehicles under certain sub-codes until December 2025 [Assegaf Hamzah & Partners]. Sales efforts should prioritize direct, bulk deals with major manufacturers, while monitoring policy shifts that could affect demand.

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Indonesia Passenger Vehicles (HS 8703) 2025 Q2 Export: Action Plan for Passenger Vehicles Market Expansion

Strategic Supply Chain Overview

The Indonesia Passenger Vehicles Export 2025 Q2 market under HS Code 8703 is defined by two key price drivers. Product specifications, like engine type and capacity, set unit prices. OEM contract volumes with major buyers drive overall value. This creates a concentrated supply chain. Indonesia acts as an assembly hub for high-volume models. It depends heavily on technology and brand partnerships from key manufacturers.

Action Plan: Data-Driven Steps for Passenger Vehicles Market Execution

• Use HS Code sub-category data to track demand for engine types. This will optimize production mix for highest margin segments in HS Code 8703.
• Analyze buyer frequency reports to forecast order cycles from major OEMs. This prevents overproduction and aligns inventory with bulk purchase patterns.
• Monitor geographic trade flows to prioritize markets like the Philippines and Vietnam. This maximizes supply chain efficiency for high-volume exports.
• Review tariff policies for niche segments like electric vehicles. This captures temporary incentives before they expire in December 2025.
• Diversify into hybrid and premium sub-codes using value-chain analysis. This reduces reliance on a few models and buyers.

Take Action Now —— Explore Indonesia Passenger Vehicles Export Data

Frequently Asked Questions

Q1. What is driving the recent changes in Indonesia Passenger Vehicles Export 2025 Q2?

The Q2 export value surged 30% to 1.77 billion USD, driven by a June unit price spike (15.41 USD/kg) likely tied to higher-value electric vehicle exports and seasonal demand shifts.

Q2. Who are the main partner countries in this Indonesia Passenger Vehicles Export 2025 Q2?

The Philippines dominated with 26.89% of export value, followed by Vietnam, Mexico, and Saudi Arabia as high-volume markets, while Timor-Leste represented a niche high-value segment.

Q3. Why does the unit price differ across Indonesia Passenger Vehicles Export 2025 Q2 partner countries?

Price differences reflect product specialization: bulk exports to the Philippines (lower unit value) contrast with premium vehicles to Timor-Leste, while most non-anomalous sub-codes cluster between 8.42–13.16 USD/kg.

Q4. What should exporters in Indonesia focus on in the current Passenger Vehicles export market?

Prioritize relationships with dominant high-volume buyers (e.g., Mitsubishi, Honda) and diversify into hybrid/EV niches, leveraging ASEAN markets and temporary tariff incentives for electric models.

Q5. What does this Indonesia Passenger Vehicles export pattern mean for buyers in partner countries?

High-volume buyers (e.g., Philippines) benefit from stable supply of mass-market models, while niche buyers (e.g., Timor-Leste) access specialized vehicles, though both face competitive pricing due to uniform unit costs.

Q6. How is Passenger Vehicles typically used in this trade flow?

Exports consist primarily of differentiated manufactured goods (spark-ignition, hybrid, and compression-ignition engines) for consumer and commercial use, not bulk commodities.

Q7. What is yTrade?

yTrade is a global trade data platform that provides SaaS and API access to provide accurate, structured, and searchable import-export trade data for international business decisions. It enables users to access verified shipment records, analyse buyer and supplier activity, review company trade overviews, assess compliance risks, and monitor real market demand — all from a single, scalable system.

Q8. How can yTrade benefit my business?

yTrade helps businesses:

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Q9. What features does yTrade offer?

yTrade provides practical, trade-focused tools including:

• Global shipment search by HS code, product, company name, port, or country
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