Chinese Car Brands Make Their Mark on the Indonesian Market, Here Is Toyota's Response

Jakarta, CNBC Indonesia - Competition in Indonesia’s automotive industry is intensifying with the arrival of a number of Chinese brands, especially in the vehicle electrification segment. Toyota-Astra Motor (TAM) acknowledges that the presence of these new players has made the battle for market share increasingly fierce.

Marketing Director of PT Toyota-Astra Motor (TAM) Bansar Maduma said the arrival of Chinese brands essentially offers Indonesian consumers a wider variety of technologies and products.

“Fundamentally, we are very grateful that competitors come with products that are their flagship offerings. This certainly adds to the spirit of competition to deliver the best products for customers,” Bansar said during the 2026 Toyota Journalist Test Drive event in Yogyakarta on Tuesday (15/9/2026).

Regarding the plug-in hybrid technology widely introduced by Chinese brands, Toyota views it as a product targeting consumer preferences that differ from Toyota’s hybrids. However, this has not immediately put pressure on Toyota’s sales.

“In terms of sales, actually no, because we have improved compared to last year,” Bansar said.

Even so, across the automotive market as a whole, the entry of many new players means the market share previously contested by a handful of brands is now being divided further.

“Because in terms of the automotive market, well, that is perhaps yes, because the pie is indeed being divided up,” Bansar said.

In the electrification segment, Toyota remains one of the largest players. As of August 2026, Toyota claims its electrification market share stands at around 23%.

“Toyota’s electrification is actually still number one up until August. If I’m not mistaken, the market share is 23%,” he said.

This is supported by several Toyota hybrid models, including the Kijang Innova Zenix Hybrid and the Veloz Hybrid EV. Bansar said the Veloz Hybrid EV is now recording sales of around 2,000 units per month.

“The Veloz Hybrid has already reached 2,000 units per month. And then there is also the Zenix Hybrid, which in terms of purchase orders exceeds 2,000. So in total, our combined hybrid figures mean we are still roughly number one,” he said.

Bansar believes the presence of Chinese brands does not necessarily mean Toyota customers are being taken away. Some consumers are instead gaining new options in line with the technology preferences they desire.

“They are not targeting our customers. Rather, this represents a choice being shared with customers in Indonesia,” Bansar said.