Strengthening Business Diversification Amidst Automotive Industry Shifts
Shifting consumer behaviour, technological advancements, and evolving economic dynamics are driving automotive companies to seek new growth sources beyond the traditional vehicle sales business. While unit sales were previously the backbone of the industry, players are now expanding their focus to after-sales services, insurance, financing, vehicle rentals, used cars, and electric vehicle-based mobility solutions. This transformation is reflected in the strategy implemented by PT Mitra Pinasthika Mustika Tbk (MPMX), also known as the MPM Group. Amidst dynamic market conditions, the company is striving to maintain a balance between business growth, operational effectiveness, and long-term value creation through the strengthening of various business lines.
“We continue to strengthen our operational capabilities, maintain closeness to customers, and encourage every entity to remain adaptive and relevant to changing market needs,” stated MPMX Group CFO Beatrice Kartika in an official statement. According to her, this strategy is executed by ensuring every business unit has a strong foundation in terms of operations, service quality, and the ability to adapt to customer needs. This approach is evident in the motorcycle distribution and retail business operated through MPMulia and MPMMotor.
The company is not only focusing on increasing unit sales but also strengthening sales quality, after-sales services, productivity, and operational effectiveness to maintain sustainable profitability. Simultaneously, the company is seeking growth opportunities outside of Indonesia. One such step is the expansion of Honda motorcycle distribution into Timor-Leste. MPMulia has been penetrating the market since May 2025, and by April 2026, it will have established four official Honda networks, all operating in Dili, covering everything from sales to after-sales services. Currently, the company’s focus remains on strengthening and deepening the existing network in Dili as the economic hub of Timor-Leste.
Diversification is also being pursued through the insurance business. Amidst increasing public attention to asset and mobility protection, MPMInsurance is strengthening its strategy through portfolio diversification and the development of new growth sources. One focus area is two-wheeled vehicle protection products designed to meet increasingly diverse customer needs. The company is also expanding distribution through partnerships across various ecosystems, ranging from financing and lifestyle to travel and accommodation, ensuring protection services are closer to people’s daily activities.
In the vehicle rental segment, MPMRent is directing growth towards high-value sectors such as minerals, oil, and gas, as well as professional services. Commercial execution is being strengthened through simplified sales processes and the addition of sales personnel in several strategic branches. MPMRent is also enhancing the development of green mobility solutions by providing electric vehicle-based transportation services for corporate needs, supporting more efficient and sustainable mobility while opening new growth opportunities. Further potential lies in the used car business. Through its business unit AUKSI, MPM Group plans to gradually expand its service network from three locations to 15, utilising MPMRent branch offices as part of the operational network. This expansion is expected to broaden service coverage, increase auction volumes, and provide optimal services to clients across various regions.
Meanwhile, in the financial services segment, JACCS MPMFinance Indonesia continues to strengthen its business quality through increased productivity, disciplined portfolio management, and enhanced governance supported by digital and organisational capability development. In addition to strengthening individual business lines, MPM Group continues to integrate sustainability aspects into its business strategies and processes as part of its efforts to build long-term business resilience and create relevant value for all stakeholders.