Daihatsu Chief Reveals How Indonesians' Finances Are Affecting LCGC Sales

Jakarta, CNBC Indonesia - The market for low-cost, environmentally friendly cars, or Low Cost Green Car (LCGC), has begun to slow in early 2026 as consumer purchasing power remains challenged. PT Astra Daihatsu Motor (ADM) says that the main challenge for the segment is weaker purchasing power, particularly among first-time buyers.

Sri Agung Handayani, Marketing Director and Corporate Communications Director of ADM, said the LCGC slowdown comes amid an economy that has not yet fully recovered. The first-car buyer segment remains inclined to delay purchases of new vehicles.

‘Three things that are a challenge here are LCGC. If you glance at it, consumption and purchasing power have not yet fully risen; the share moved from around 8% to 13.7%,’ Agung told reporters at the Daihatsu Campaign 2026 press conference at the Astra Biz Centre, BSD, Tangerang, on Wednesday (20 May 2026).

LCGC has long depended on customers buying a car for the first time. As a result, changes in purchasing power directly affect sales in this affordable segment. However, the decline in the LCGC market has not occurred across all models. The market remains relatively stable for the LCGC MPV category, which is widely used by young families.

‘So this is what makes LCGC drop to 13.7%. But if we look at GDP, it rose due to government spending,’ she said.

According to him, monthly LCGC MPV sales have not changed much compared with last year. On average, sales remain around 5,600 units per month based on national retail data. Meanwhile, weakness is more evident in the LCGC hatchback segment. ADM notes sales for that category fell from around 5,500 units to 4,500 units.

This indicates that consumers remain very cautious when buying new vehicles. However, he emphasised that the cheap car market has not disappeared and still has substantial demand.

‘If LCGC MPV’s contribution percentage is around 5,600 per month year-to-date last year,’ Agung said.

Against the backdrop of a slower market, Daihatsu says several of its best-selling models still maintain sales. The Ayla continues to record stable sales despite the market not yet fully recovering.

According to Agung, Ayla and its twin models remain in the range of 2,000 to 2,200 units. The figure is not significantly changed compared with previous periods.

‘But, praise be to God, Ayla and our twin actually sell 2,000, 2,200; it hasn’t changed. So actually the market remains there,’ Agung said.