Dollar strengthens, several car manufacturers reveal potential price increases

Jakarta (ANTARA) - Chery otomotif manufacturer is examining the possibility of adjusting vehicle prices amid the depreciation of the rupiah, which could affect various operating costs up to production. Met in Jakarta on Monday evening, 18 May, Zeng Shuo, Country Director of Chery Sales Indonesia (CSI), said they are still calculating the potential impact of cost increases on selling prices. ‘We are also looking at it because now one of the reasons is that all costs are rising, so there is that factor as well. We are trying to calculate, but if costs continue to rise there is a possibility that prices could go up as well,’ Zeng said. ‘We have considered these conditions through a comprehensive study and so far we remain positive and confident in the strategies we have, both in terms of products, prices, and the promotions we will implement. If you ask about the potential (price increases), it might happen, but at the moment it is not in our short-term strategy,’ said Luther Panjaitan, Head of Public Relations and Government Affairs at PT BYD Motors Indonesia. Luther assessed that the current economic dynamics require attention because they could affect purchasing power of the public. ‘We are concerned about the current economic dynamics. But it seems there is already a dedicated team that specifically handles the economic dynamics in Indonesia. Of course what we very much hope is that there will not be a spillover into purchasing power,’ he added. BYD regards consumer purchasing power as a key factor for the automotive industry overall. According to the company, the condition affects not only electric vehicles but also conventional and electrified vehicles. ‘Because purchasing power is important for us as the automotive industry. It determines the appetite of consumers to buy a vehicle. So we are no longer talking EV, ICE or hybrid, but if purchasing power is hit it will significantly affect the industry as a whole,’ he continued.