Sales of Avanza, Brio and Similar Models Vulnerable to BI Rate Hike, Here's Why

Jakarta, CNBC Indonesia - The increase in Bank Indonesia’s benchmark interest rate (BI Rate) is expected to have the greatest impact on the segment of cars priced below Rp300 million. In this class, a number of best-selling models such as the Toyota Avanza, Honda Brio, Daihatsu Sigra, and Toyota Calya fall within this price range. This segment has long been the primary choice for Indonesian consumers because it offers more affordable prices. The majority of purchases are also made through credit facilities, so changes in interest rates have the potential to influence consumer decisions. “Overall, the cars that are in high demand by the public, those priced below Rp300 million, are very price sensitive,” said Kukuh Kumara, Secretary General of the Association of Indonesian Automotive Industries (Gaikindo), to CNBC Indonesia on Monday (20/7/2026). “Likewise, commercial vehicles are still needed by business operators because business needs cannot be postponed,” he added. In addition to passenger cars, commercial vehicles will remain necessary for business operators even if financing costs increase. However, for the family car and city car segments, which are widely purchased by households, sensitivity to monthly instalments is considered much higher. Kukuh explained that around 70 per cent of the public buy cars in this price range. Therefore, manufacturers together with finance companies are expected to rely on various promotional programmes to maintain buying interest amidst the rise in credit rates. “That’s right, around 70 per cent of people buy vehicles that are indeed priced like that,” he stated. Support from financing institutions is expected to maintain the public’s purchasing power for best-selling cars such as the Avanza, Brio, Calya, Sigra, and other models in the sub-Rp300 million price segment. “Seventy per cent of people buy cars on credit. It seems the motor vehicle financing institutions also hope their performance will be measurably improved. They will also launch programmes that are attractive and within the reach of our society today,” said Kukuh.