Chery Indonesia Maintains Vehicle Prices Amid Current Economic Conditions
Jakarta — Weakening of the rupiah against the US dollar has once again drawn attention from Indonesia’s automotive industry, including Chery Group Indonesia.
Amid challenging market conditions, automotive manufacturers are beginning to face mounting production and import cost pressures. However, amid this situation, Chery Group Indonesia is ensuring it continues to maintain price stability for its products in the Indonesian market.
President Director of Chery Group Indonesia, Zeng Shuo, stated that the company is currently adopting a wait-and-see strategy whilst continuing to monitor developments in the rupiah exchange rate, which has recently experienced considerable fluctuations.
According to him, exchange rate conditions are indeed an important factor in the automotive industry. Despite this, Chery currently has no plans to raise vehicle prices in the near term.
“We continue to monitor market developments and rupiah exchange rate fluctuations. At present, we are making significant efforts to maintain current selling prices,” said Zeng Shuo.
This statement comes as welcome news for Indonesia’s automotive consumers, particularly amid rising cost-of-living trends and weakening purchasing power. In recent years, changes in the rupiah exchange rate have almost always resulted in price adjustments for new vehicles in Indonesia.
This situation presents a particular challenge, especially for brands aggressively expanding the electric vehicle market in Indonesia. As well as maintaining profit margins, manufacturers must also sustain price competitiveness amid increasingly intense market competition.
Chery is among brands that have been quite aggressive in strengthening its business in Indonesia over the past two years. From internal combustion engine (ICE) vehicles, hybrids, to pure electric vehicles, the company continues to expand to reach various consumer segments.
Models such as the Chery Omoda E5, J6, and the Tiggo Series line form the backbone of Chery’s growth in the domestic market. Not to mention the arrival of new sub-brands such as Lepas and iCar, which are being prepared to strengthen penetration of electrified vehicles and lifestyle vehicles in Indonesia.
“Consumers remain our top priority,” said Zeng Shuo.
This statement indicates that Chery is currently attempting to absorb the impact of rupiah weakness to avoid immediately passing it on to consumers. This move is also part of a strategy to maintain market confidence, particularly as competition in Indonesia’s automotive industry becomes increasingly aggressive, especially in the electric vehicle segment.
However, Zeng Shuo did not rule out the possibility that the situation could change at any time. Global economic conditions and currency exchange rates remain highly dynamic.
Should currency pressure persist over the long term, it is not unlikely that automotive manufacturers will eventually need to adjust prices to maintain business sustainability. Particularly given that other costs such as global logistics, raw materials, and distribution have also experienced increases in recent times.