Chinese Car Invasion: Is It Truly Eroding Japanese Car Dominance?

WUHU, KOMPAS.com – The entry of various Chinese car brands into Indonesia has recently been frequently linked to the stagnation of the national automotive market. In fact, there is a perception that the presence of these new brands is merely cannibalising the market share of established players, particularly Japanese brands.

Responding to this, Gaikindo’s Vice Chairman for Market Development, I Jongkie D Sugiarto, assesses that this perception is not entirely accurate.

According to him, the presence of Chinese brands actually has a positive impact on consumers because it provides more vehicle options, particularly in the electric car segment.

He explains that the decline in electric vehicle prices in recent years is evidence that increasingly tight competition benefits the market from the consumer’s perspective.

Nevertheless, Jongkie emphasises that the failure of national car sales to rise is not caused by the entry of new brands, but by more fundamental factors.

“Overall (sales) have not been able to rise because our society’s purchasing power is still low. Economic growth, interest rates, dollar exchange rate, these are all (the factors),” he said.

Factors such as economic growth, rupiah exchange rate, interest rates, and inflation are the main determinants of the national automotive market’s movements.

“The factors I mentioned earlier also need to be improved, need to be adjusted,” said Jongkie.

He hopes that if economic conditions improve, the Indonesian automotive market can grow again and achieve higher sales figures.

“So that from 850,000 units (sales) we can reach 1 million again next year,” he stated.