Hot Automotive Market: How Astra Faces Electric Vehicle Challenges?

JAKARTA - PT Astra International Tbk acknowledges that competition in the national automotive industry is becoming increasingly tight, particularly with the entry of car manufacturers from China and Korea offering more competitive prices. Nevertheless, Astra remains optimistic about maintaining a market share of around 50 per cent amid these dynamics. That statement was delivered at Astra’s Annual General Meeting of Shareholders (AGMS) held in Central Jakarta on Thursday (23/4/2026). Management assesses that the increasingly open competition is part of the ongoing evolution of the automotive market. According to him, this situation demonstrates the resilience of the company’s business model. “If we look at it historically, Astra’s market share has been around 50 per cent, even amid very tight competition, especially from new car brands,” said Gidion. He explained that the aggressive presence of Chinese car manufacturers in the electric vehicle segment as well as affordable prices poses a new challenge. However, Astra views that every technology, whether electric vehicles, hybrids, or conventional engines, still has its own market in Indonesia. According to Gidion, the diverse characteristics of consumers in Indonesia mean that no single technology fully dominates. To face this competition, Astra relies on a strategy based on the ecosystem it has built over decades. From an extensive dealer network, after-sales services, to financing support, these become the main strengths in maintaining consumer loyalty. In addition, Astra is also adjusting its product portfolio to the evolving market needs. This approach is carried out by offering various vehicle choices that are deemed most suitable for the character and purchasing power of consumers in each region. With this strategy, Astra believes it can maintain its position as one of the main players in the national automotive industry, even though pressure from new competitors is expected to continue increasing in the coming years.