Sluggish LCGC Sales: Honda's Strategies
JAKARTA, KOMPAS.com – Sales of environmentally friendly low-cost cars (LCGC) have experienced a decline in recent times. This situation is inseparable from the weakening purchasing power of the public and the tightening of financing.
Based on data from the Indonesian Automotive Industry Association (Gaikindo), LCGC wholesales from January to December 2025 were recorded at 122,686 units. This figure represents a 30.6% decrease compared to 2024, which reached 176,766 units.
Meanwhile, retail sales from dealers to consumers also saw a correction of around 27%, reaching 130,799 units.
“Indeed, we still hope that LCGC is the market for first-time buyers. Many people are switching from two-wheeled vehicles to their first car, which is an LCGC,” said Billy, when met in North Jakarta on Monday (30/3/2026).
However, he acknowledged that the segment is currently facing pressure, particularly due to declining purchasing power and stricter financing policies.
“Now, it appears to be declining because there is also tightening of financing and purchasing power is decreasing. So we continue to coordinate with financing institutions to make it easier for consumers. The impact is very significant for LCGC, especially for first-time buyers,” he said.
Nevertheless, Honda continues to strive to maintain the appeal of its products in this segment through various refreshes.
Billy mentioned that one strategy being implemented is to add value to the Honda Brio Satya, which is one of the flagship models in the LCGC segment.
“We always provide added value for the Brio Satya; we have refreshments, the audio has been enlarged. There are many refreshments given to the LCGC to provide more value to consumers,” he stated.
Based on Gaikindo data, sales of the Honda Brio Satya in January 2026 were recorded at 3,430 units. This figure then dropped to 3,096 units in February 2026.
This decline reflects the pressure still felt in the LCGC market, particularly from the side of public purchasing power that has not fully recovered.