automotive

A Rise In Car Prices Is Anticipated In 2025 Due To The Increase In The Value Added Tax (VAT) To 12%

Astra Credit Companies (ACC), a financing entity under PT Astra International Tbk. (ASII), expresses hope for an improvement in consumer purchasing power in the coming year. This anticipated enhancement is expected to positively influence car sales, despite the impending price hikes resulting from the VAT adjustment effective January 1, 2025. Chief Marketing and Sales Officer of Astra Credit Companies, Tan Chian Hok (Ahok), stated after the Astra Auto Fest 2024 press conference on November 15, 2024, that the purchasing power is closely linked to government funding through the state budget. He noted that with the new administration, there is optimism for increased consumer spending, especially as the political year has concluded.

Furthermore, Ahok indicated that the authorized dealers under the Astra Group will adjust their vehicle prices in response to the VAT increase next year. He remarked, "Certainly, prices will rise; market volume must align with Gaikindo. However, the additional VAT will inevitably increase the selling price of vehicles at each authorized dealer. It will certainly increase, especially with the VAT rising from 11% to 12%." He also mentioned that the automotive industry's performance this year has been affected by the political climate, including the Presidential and Regional Elections.

Due to various other activities, the market this year has proven to be more challenging. From the beginning of the year, we have been aware of numerous political events such as elections and local government elections. However, we remain optimistic that 2025 will see a resurgence, he stated. He also expressed hope that the automotive industry will recover next year, with car sales reaching Gaikindo's target of 1 million units by 2025. Consequently, as a strategy to boost car sales, Astra Financial, in collaboration with the Astra Automotive Group, is organizing the Astra Auto Fest 2024, scheduled for November 13-17, 2024, at Pondok Indah Mall 2 in South Jakarta. "We understand that approximately 60-80% of car purchases are supported by financing options. Therefore, we have prepared our team here, including ACC, TAF, and FIF, all ready to assist," Ahok remarked. In total, 17 Astra business units will participate in the exhibition, including dealers such as Auto2000 (Toyota), Daihatsu, Isuzu, Lexus, UD Trucks, and Astra Honda Motor (AHM).

Additionally, financing units such as ACC, TAF, FIF Group, AstraPay, and Bank Saqu will also be present. "This is a rare opportunity, especially since we typically conduct promotions at the end of the year, and prices are expected to rise next year," he concluded.

Tag: ACC Astra Credit Companies Astra International