Honda Dealer Closes Down, Shocking News Emerges Immediately
The closure of automotive dealerships continues amid escalating competition in the national automotive industry. The latest case involves a Honda dealer network in the Pondok Pinang area, Kebayoran Lama, South Jakarta, which has officially halted its operations.
This closure adds to the long list of dealers that have previously pulled out amid increasingly burdensome market pressures.
Information about the closure was directly conveyed through the dealer’s official social media. “We, Honda Pondok Pinang, bid farewell and withdraw. Thank you for the support and trust towards us,” wrote the management in a post on its social media account, which has now been deleted, quoted on Tuesday (7/4/2026).
Although the showroom is closing, consumer services are said to remain accessible through other networks within the same group.
This phenomenon is not an isolated incident. In recent times, several Honda dealers in various cities such as Bandung, Surabaya, Bekasi, and Tangerang have been known to stop operations or switch to selling other brands.
This shift is evident on the ground, where not a few showrooms that previously sold Honda cars have now changed flags, particularly to brands originating from China. Information obtained by CNBC Indonesia indicates that the dealer located in Pondok Pinang will switch to becoming a Jaecoo dealer.
The entry of Chinese manufacturers with aggressive strategies has become one of the main factors in changing the market landscape. They offer more competitive prices with technology and features deemed fresher by consumers. This combination has proven effective in attracting market interest, while also pressuring established players.
On the other hand, Honda’s sales performance has shown a downward trend in recent years. Industry data records that sales once reached more than 128,000 units in 2023, but fell to around 103,000 units in 2024 and dropped sharply to around 71,000 units in the following year. This figure is even lower than the achievement during the 2020 pandemic.
This decline has a direct impact on the sustainability of the dealer network. High operational costs are no longer commensurate with the continuously shrinking sales volume. In such situations, some business actors choose to adapt by switching to brands deemed more promising in terms of business.
To date, CNBC Indonesia is still awaiting a response from Honda Prospect Motor as the official holding agent regarding this wave of dealer closures.
This wave of dealer closures serves as a signal that competition is no longer just about products, but also business models and the speed of adaptation to market changes. If it does not respond promptly to this dynamic, the pressure on the distribution network could potentially widen.
Meanwhile, Secretary General of the Indonesian Automotive Industry Association (Gaikindo), Kukuh Kumara, revealed that the sales decline is occurring across the national automotive market. This condition is exacerbated by the presence of new players entering the market.
“It’s clear that there is an overall sales decline. Meanwhile, on the other hand, there are many new players entering as well,” he told CNBC Indonesia on Tuesday (7/4/2026).
“The decline is not due to brand issues, but more towards the decreasing purchasing power,” he said.