GAC Refuses to Join Price War, Chooses to Focus on Quality and Service

BEIJING - The competition in Indonesia’s automotive industry, particularly in the new energy vehicle (NEV) segment, is predicted to become increasingly intense in the future. Currently, many brands from China have entered Indonesia. All of them offer similar features: advanced technology at affordable prices, indicating the potential for a price war. “Actually, in China, the price war is even more severe than in ASEAN,” said Haigang in Beijing, China, last weekend. “But our strategy is not to join the price war like the others; we want to position our prices appropriately,” he explained. According to Haigang, aggressive price cutting is not a sustainable strategy in the long term. Therefore, GAC chooses a different approach by balancing price, product quality, and after-sales service. Haigang emphasised that this approach will also be applied in Indonesia through collaboration with Indomobil Group. “That is not sustainable if done by slashing prices like that. We, along with our partner Indomobil, will focus on service and delivering product quality to consumers,” he said. With this strategy, GAC hopes to build market trust while maintaining business sustainability amid increasingly tight competition.