automotive

Price War To Erupt At GIIAS 2025, APM Monitors Chinese Automotive Brand Strategy

Chinese automotive brands have started to wage a car price war in Indonesia. In fact, some have done it several times even though the latest vehicles have been refreshed and have additional features. The peak will be at the 2025 Gaikindo Indonesia International Auto Show (GIIAS) exhibition which will be held starting July 23, 2025. 

Fierce competition is predicted to occur there. A total of 39 passenger car brands are heating up Southeast Asia's largest automotive event. A price war is inevitable. 

"This has happened in its home country and several countries. For us at Indomobil, we have predicted it," said President Director of PT Indomobil National Distributor Citroen & Jeep, Tan Kim Piauw in Jakarta 

He said a number of brands already know about the dynamics of the price war. "I think all brands already know. I think (they) have a strategy. Indomobil itself, outside of Citroen and Jeep, has Chinese cars that are already running and that will come," said Tan Kim Piauw. 

He said this situation in the short term will benefit consumers. Where vehicle prices become more affordable. "I think consumers benefit and it is an attraction for consumers (to buy cars). However, for those who have previously bought, it makes them worried," he said. 

How long will the price war last? Tan Kim Piauw assessed that it depends on the brand's policy. "I personally find it difficult (to predict) if the competition is from the principal. If this is a fight from APM or distributors, I'm sure there are limits. But for the principal, we don't know how long," he said. 

Previously, the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita asked manufacturers to be able to reduce car prices, even lower them so that purchasing power is maintained. Last year, car sales fell by 13.9 percent compared to the achievement in 2024. 

This has had a major impact on various sectors, it is hoped that car sales can recover this year. The price of motor vehicles is currently getting higher due to the 12 percent VAT and tax options. This is feared to make people reluctant to buy new vehicles because they prioritize basic needs. 

"Of course the government is the key to helping the automotive industry rebound. But also other stakeholders, I hope that a sense of urgency can emerge by issuing new policies. For example, this is not a directive, for example, sacrifice margin or lower selling prices. This is for example, yes. Please study each company, "said Agus Gumiwang to reporters, some time ago. 

Now, a number of Chinese brands have begun to aggressively lower car prices, including MG Motors, BAIC, Chery, Wuling, and others. Price reductions have also been carried out up to tens of millions of rupiah with similar features. 

Most recently, Chery lowered the prices of the C5 and E5, which were previously sold under the names Omoda 5 and Omoda E5. They lowered prices starting from IDR 50 million to IDR 100 million with refreshed features. 

Jaecoo as one of the brands under Chery said that manufacturers cannot control the selling price of vehicles. However, current market conditions do require a number of brands to take such steps. 

Tag: Automotive Gaikindo Indonesia GIIAS 2025