Honda Maintains Car Prices Amid Rupiah Weakness

JAKARTA - The weakening of the rupiah against foreign currencies is feared to pressure the automotive industry. Exchange rate conditions can affect production costs, component prices, and sales strategies in the domestic market. However, PT Honda Prospect Motor (HPM) has confirmed there are currently no plans to raise car prices in Indonesia.

‘Indeed, the rupiah’s exchange rate against foreign currencies affects the automotive industry, and the current rupiah depreciation is putting pressure on us for imports, such as importing components or spare parts used as raw materials for our production that still use foreign currency,’ Billy said in Jakarta last weekend.

Billy explained that the impact of rupiah depreciation is relatively contained because most products sold in Indonesia are manufactured locally with high domestic content.

‘But I’m not talking about the Prelude here; most of our production at the Karawang plant (West Java) has very high domestic content, so it can mitigate the impact of rupiah depreciation,’ Billy said.

High domestic content reduces dependence on imported components compared to vehicles imported fully assembled from abroad.

Despite ongoing cost pressures due to exchange rates, Honda stated it will not immediately adjust vehicle prices. The company is currently monitoring market developments and economic conditions before making a decision.

‘At present, we have no plans to increase car prices, including these products, so we continue to monitor developments, watch how the exchange rate moves, and assess whether our actions are appropriate,’ Billy said.

‘However, this is one factor; there are also tax factors such as BBN (vehicle registration tax) which increases annually, which can also affect car prices, and next year’s prices are not fixed,’ Billy added.