Japanese Car Dealer Boss Speaks Out on Closure of Japanese Car Dealerships

JAKARTA, KOMPAS.com – The phenomenon of the closure of several Japanese-origin car dealerships over the past year is beginning to attract attention in the national automotive industry.

This shift not only reflects increasing business pressures but also a change in market direction that is now leaning towards electric vehicles (EVs) and products with higher value.

Amid this situation, some dealership networks have chosen to adapt by switching to selling other brands, particularly from China.

President Director of PT Kreasi Auto Kencana, Andee Yoestong, assesses that one of the main causes of the weakening of Japanese brand dealerships is a product portfolio that is less relevant to current market needs.

“They are releasing units that are not favoured. Nowadays, everyone is referring to EVs,” said Andee in Jakarta (16/4/2026).

According to Andee, the Indonesian automotive market now demands a combination of competitive pricing and attractive features, two aspects that are seen as increasingly aggressively offered by brands from China, especially in the electric vehicle segment.

Not only that, the decision for dealerships to switch brands is also based on careful considerations. Particularly regarding the investment commitment and business sustainability from the principal.

“The first factory must be there. If they don’t have a factory, we could die anytime if they close. So they really must be serious about investing in Indonesia,” he said.

The presence of a factory in the country becomes a crucial factor, as it shows the brand’s seriousness in building a long-term market. For dealerships, this also serves as a guarantee of business continuity, from unit supply to after-sales services.

The dominance of Japanese brands, which has been strong for decades, is now facing serious challenges from new players that are more aggressive, particularly in the EV segment.