Latest news with #Gaikindo
Malay Mail
21-07-2025
- Automotive
- Malay Mail
Consumers rejoice but Malaysian, Indonesian entrepreneurs sound alarm as Chinese chains flood region
KUALA LUMPUR, July 21 — Chinese brands are enjoying growing success in Southeast Asia, but some local players and observers remain wary about their rapid rise and potential impact on domestic businesses. In a CNA report, a Malaysian food and beverage entrepreneur said anonymously that he is under pressure from Chinese chains such as Mixue, which offer bubble tea at RM5 and ice cream at RM2, asking, 'It will remain to be seen how long they will be here.' 'I do hope locals will support local brands and restaurants,' he added, underscoring the concerns of small operators facing fierce price competition. Experts say that while Chinese companies are gaining market share through affordability and innovation, the pace of their expansion has raised questions over long-term sustainability and market fairness. Andry Satrio Nugroho from the Institute for Development of Economics and Finance predicted that low-price strategies may not last as production shifts to other countries, saying aome Chinese goods are now produced in Vietnam to keep costs down. He also noted that a continued perception gap with Chinese brands, saying they were often still seen as a second-tier choice to Western competitors. Gaikindo co-chairman Jongkie Sugiarto said that Japanese brands remain dominant in Indonesia due to a strong reputation for reliability, and Chinese players 'need to work on' building that same level of trust. Habib Dzakwan from Jakarta's CSIS think tank cautioned that unchecked expansion may provoke nationalist sentiment, stating, 'If not addressed, it's easy to trigger anti-Chinese sentiment.' A BYD Dolphin Surf electric vehicle is displayed on stage during a presentation by BYD carmaker in Berlin, Germany May 21, 2025. — Reuters pic Lee Pei May of the International Islamic University Malaysia noted that local businesses are already raising concerns over the invasion, saying, 'This is due to the fact that Chinese firms are highly competitive.' Despite these concerns, analysts agree that China's mix of scale, technology and strategy means its brands will continue to grow in the region's markets. Consumers also reported growing affinity for some Chinese brands, rejecting the view that they were less than alternatives from other countries. Entrepreneur Aditya Adri Saleh said after using a Chinese EV for nearly a year, 'I would not second guess Chinese products until I test them out myself.' 'While others see it as an influx of inferior products that wouldn't last long, I can attest from personal experience,' he added. Habib believes the trend will persist as long as purchasing power remains unchanged, saying, 'Consuming Chinese brands is a pragmatic yet rational choice.'
Yahoo
15-07-2025
- Automotive
- Yahoo
Indonesian vehicle sales fall 23% in June
New vehicle sales in Indonesia plunged by 23% to 57,760 units in June 2025 from 74,615 in the same month last year, according to wholesale data compiled by the local automotive industry association Gaikindo. Last month the market continued to decline from weak year-earlier volumes, when sales dropped by 13% from post-pandemic peak levels in the previous year. Market sentiment has weakened significantly in the last year, with fewer consumers committing to large purchases, while companies also face growing uncertainty regarding international trade due to possible import tariff hikes in the US. The latest government data showed that GDP growth slowed slightly to 4.9% year-on-year in the first quarter of 2025, compared with 5.0% growth in the previous quarter, with domestic consumption and exports both slightly weaker. Bank Indonesia last cut its benchmark interest rate to 5.5% in May - the third 25-basis-point cut from last year's peak of 6.25%. Gaikindo's deputy chairman, Jongkie Sugiarto, last month told local reporters: 'Weaker purchasing power for new cars has become the main cause of the ongoing decline in auto sales.' In the first six months of 2025, the vehicle market shrank by almost 9% year-on-year to 374,740 units after declining by 19% to 410,020 units in the same period last year, with sales of light passenger vehicles falling by over 8% to 292,682 units while commercial vehicle sales fell by over 9% to 82,058 units. Toyota's first-half sales declined by 4.5% to 123,846 units, with volumes supported by popular models such as the recently-launched Hilux Rangga and the Innova MPV; followed by Daihatsu which saw its sales plunge by 25% to 64,405 units; Honda 32,681 units (-31%); Mitsubishi 31,081 units (-15%); and Suzuki 27,180 units (-18%). Japanese automakers are coming under increased pressure in this market from the growing presence of Chinese brands, which are driving up sales for battery electric vehicles (BEVs) in the country. BEV sales surged almost threefold to 34,890 units in the first six months of the year, with BYD and its Denza brand combined accounting for 19,825 units, followed by SAIC-GM-Wuling with 5,170 units and Chery/Omoda with 4,737 units. Overall vehicle production in the country fell by almost 2% to 552,509 units year-to-date, while exports of fully-assembled vehicles increased by over 7% to 233,648 units. "Indonesian vehicle sales fall 23% in June" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Malay Mail
15-07-2025
- Automotive
- Malay Mail
VinFast to introduce new model in Indonesia upon return to GIIAS 2025
At GIIAS 2025, VinFast will introduce a brand-new right-hand drive model to Indonesian consumers. JAKARTA, INDONESIA - Media OutReach Newswire - 15 July 2025 -VinFast today announced its return to the Gaikindo Indonesia International Auto Show (GIIAS) 2025, scheduled to take place from July 24 to August 3. At the premier automotive event, the Company will introduce an entirely new right-hand drive model to Indonesian consumers, perfectly complementing its diverse EV lineup. This strategic move reaffirms VinFast's strong commitment to continuous innovation and pioneering role in shaping a green future for stands as Indonesia's largest automotive exhibition and one of Southeast Asia's most significant, drawing hundreds of leading global automotive its return to GIIAS 2025, VinFast will display its full range of electric cars currently available for sale in Indonesia, spanning from the VF 3 (mini SUV), the VF 5 (A-segment SUV), the VF 6 (B-segment SUV), to the VF e34 (C-segment SUV). Notably, the highlight of the event will be the grand debut of a completely new right-hand drive pure-electric model for the Indonesian the impressive debut of this new vehicle, VinFast's product portfolio in Indonesia will expand to five pioneering electric models, underscoring its commitment to offering one of the most comprehensive and diverse pure-electric ranges, crafted to meet Indonesia's evolving sustainable mobility "VinFast Arena" exhibition space at GIIAS 2025 has a total area of 2,290 m², including indoor and outdoor areas. Located in Hall 2E, VinFast's main booth features a double-decker layout, spanning an impressive 1,030 m². Visitors here can explore the cutting-edge design, advanced technology, and impressive performance of VinFast EVs, alongside green and smart charging Hall 11 will host two dynamic outdoor areas designed for direct engagement and hands-on experiences. The VinFast Cube will showcase a single, specially customized vehicle, designed to spark the imagination of VinFast enthusiasts and inspire them to personalize their own vehicles. The VinFast Arena Outdoor is dedicated to providing visitors with the opportunity to experience the full lineup of VinFast cars, from the VF 3, VF 5, VF e34, and VF 6 to the newest car just over a year since its official market entry, VinFast has rapidly introduced a diverse product range covering the most popular segments, from the compact VF 3, versatile VF 5, comfortable VF 6, to the family-friendly VF e34. All models come with highly attractive sales and after-sales policies, including complimentary charging at V-GREEN charging stations, a guaranteed buy-back value of up to 90%, and 0% interest financing for vehicle purchases, making it easier for customers to own VinFast VinFast has proactively collaborated with leading banks to offer comprehensive financial solutions. The Company's dealership network is continuously expanding, with 24 showrooms now spread across major cities like Jakarta, Bandung, Surabaya, and Bali, with further robust expansion planned. VinFast owners can also enjoy peace of mind with a wide network of authorized service workshops operated by partners Otoklix and BOS nationwide. VinFast aims to establish a network of 500 authorized service workshops across Indonesia this is also at the forefront of building a comprehensive green transformation ecosystem through strategic partnerships with the pure-electric taxi company GSM and the global EV charging station developer V-GREEN. With its state-of-the-art electric vehicle assembly plant project in Subang, VinFast is committed to actively contributing to the development of the local electric vehicle welcomes all visitors to explore its latest innovations at GIIAS 2025, located in Hall 2E and Hall 11 at ICE BSD City, from July 24 to August #VinFast The issuer is solely responsible for the content of this announcement. About VinFast VinFast (NASDAQ: VFS), a subsidiary of Vingroup JSC, one of Vietnam's largest conglomerates, is a pure-play electric vehicle ("EV") manufacturer with the mission of making EVs accessible to everyone. VinFast's product lineup today includes a wide range of electric SUVs, e-scooters, and e-buses. VinFast is currently embarking on its next growth phase through rapid expansion of its distribution and dealership network globally and increasing its manufacturing capacities with a focus on key markets across North America, Europe and Asia. Learn more at:
Business Times
24-06-2025
- Automotive
- Business Times
Toyota crashes Indonesia's used-car party with US$120 million bet
[JAKARTA] It's an alliance everyone saw coming. After decades of dominating Indonesia's automotive industry, Toyota and Astra are joining forces for the country's used-car market. The Japanese automaker shelled out US$120 million for a 40 per cent stake in Astra Digital Mobil, giving it part ownership of used-car marketplaces OLX and OLXmobbi. The deal comes as Indonesia's economic struggles hit its new-car sales. It dropped 13.9 per cent in 2024 compared to 2023, according to data from the Indonesian Automotive Industry Association (Gaikindo). Overall, roughly 800,000 new cars were sold last year – less than half of the 1.8 million used vehicles sold within the same period. These are the exact areas the likes of Carro, Carsome, and Moladin have spent years and millions of dollars on. They face entrenched incumbents with deeper pockets, broader distribution and longstanding brand trust. Now the question is this: Can these smaller players survive – and thrive – as the giants move in? A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Astra declined to comment, while Toyota did not respond to Tech in Asia's requests for a comment. Big brands, bigger footprint Yannes Martinus Pasaribu, an automotive expert from the Bandung Institute of Technology (ITB), pointed out that used vehicles offer a more flexible, lower-cost path to expansion. But it can also be be more profitable than selling new vehicles: while gross margins for new vehicles generally range from 2 to 5 per cent, it can reach 5 to 15 per cent for used cars. Toyota has also ventured into the used-car trade overseas, operating an online store for used models in Japan. In the US and Singapore, it has dealerships selling certified used Toyotas. Astra has done something similar with another brand that it distributes in Indonesia – BMW Astra Used Car, a dealership focused on certified pre-owned BMWs in Jakarta. The appeal is clear. Consumers, especially those who aren't savvy, can't always assess a car's true condition. Having a vehicle certified and guaranteed by the brand itself can provide peace of mind. Currently, it's unclear whether Toyota and Astra want to build something similar. But doing so would unlock a massive market. Luxury brands such as BMW appeal mainly to affluent consumers in major urban areas. Toyota, on the other hand, has had nationwide reach for decades – thanks to cheap, readily available spare parts and deep familiarity among Indonesian mechanics. Indeed, Toyota was the country's top-selling car brand in 2024. It sold 288,982 units and commanded a 33.4 per cent market share, as per Gaikindo data. The brand also has an unparalleled offline footprint: It has more than 360 dealers across 143 cities in Indonesia. ITB's Pasaribu believes it could be key to breaking into the used-car segment, particularly when it comes to building consumer trust. It's understandable as vehicles are big-ticket items, and buyers tend to consider many factors carefully before making a purchase. 'Each stock-keeping unit in the used-car business represents a single unit of inventory, and the transaction is non-repetitive – especially in the retail segment,' one industry expert, who asked not to be named, told Tech in Asia. Unlike e-commerce platforms such as Shopee, Tokopedia, Grab or Gojek – whose users open the apps multiple times a day – used-car transactions are far less frequent. 'If a customer uses a used-car platform once every three years, that's already good,' the expert added. Carro and Carsome, for example, began primarily online. But now, they follow an online-to-offline model, operating showrooms and inspection points. The two companies have seven and nine offline points, respectively. In contrast, Astra's OLXmobbi already has more than 30 dealerships across 10 major cities in Indonesia. Adding Toyota's offline footprint would make the Toyota-Astra alliance hard to beat. Scale isn't everything Still, Toyota-Astra's advantages do not negate Carro's or Carsome's. Indonesia's used-car market is 'too fragmented', the industry expert said. 'The used-car market is so large that even combined, Toyota-Astra, Carsome and Carro probably barely scratch the surface,' they said. Indeed, independent dealerships and individual sellers also dominate the used-car space. Most transactions still happen offline and informally. Hence, the country's used-car market is unlikely to become a winner-takes-all arena. Jongkie Sugiarto, chairman of Gaikindo, explained that while legacy players already have strong distribution networks, they are often limited to the brands they represent. In contrast, startups are not tied to specific manufacturers, allowing them to buy and sell across a wider range of brands. Carro and Carsome also certify the cars they sell based on thorough inspections and specific quality standards. 'Carsome's focus has always been on building trust through consistency – whether in how we inspect or refurbish vehicles,' said Aaron Kee, the company's chief business officer. One of the most important components in used-car transactions is financing. In 2022, around 70 per cent of car purchases in Indonesia were made through credit. Riyanto, a researcher from the University of Indonesia, believes startups can offer more flexible financing integrations. Traditional players tend to have more rigid and complicated financing schemes. Most used-car marketplace platforms in the country – including Carro, Carsome and Moladin – have embedded financing features into their platforms. But so does Astra, which offers car loans through Toyota Astra Finance with its Japanese partner. BMW Astra Used Car also provides an example of what Toyota-Astra can do: It offers financing at new car interest rates. Typically, these can be as much as 50 per cent lower than interest rates imposed on purchases of used vehicles. The real battle: profit While Indonesia's macroeconomic woes have made used cars more attractive than new ones, it doesn't mean used-car sellers are completely unaffected by market lulls. 'Some used-car dealers have observed a slower pace of business in recent months,' Carsome's Kee said. Following Toyota's investment, some expect OLX to burn cash acquiring vehicles for its inventory. Carro and Carsome, however, may not have the same appetite, with both companies eyeing potential initial public offerings. Both firms have also turned Ebitda-positive. Carro reported an earnings before interest, taxes, depreciation and amortisation (Ebitda) of around S$40 million for the financial year ending March 2025, according to The Business Times. The company is aiming for one final funding round this year before pursuing a public listing. Its rival, Carsome, posted an Ebitda of US$4.3 million for the first quarter of 2025. It achieved full-year profitability with an adjusted Ebitda of US$10.5 million in 2024. Khailee Ng, managing partner at 500 Global, one of Carsome's investors, believes the entry of large players such as Toyota can help grow the overall customer base, creating even more opportunities for startups. 'Time and time again, we've seen that fast is better than big,' he said. 'Advantages come from resourcefulness, not just resources.' On the other hand, startups innovate new products more easily. For instance, Carro recently expanded into the business-to-business space by offering new vehicles to private-hire drivers. The anonymous industry expert argued that smaller players also have advantages in unit economics. Smaller companies, according to the source, can fine-tune their cost structure without resorting to disruptive actions such as mass layoffs. 'The company needs smaller numbers to hit profitability,' they explained. Ultimately, the competition won't come down to size alone. As funding becomes harder to secure and legacy players step in, startups that focus on efficiency, adapt to market changes and maintain customer trust may still find room to grow. TECH IN ASIA
Business Times
24-06-2025
- Automotive
- Business Times
Toyota crashes Indonesia's used-car party with $120m bet
It's an alliance everyone saw coming. After decades of dominating Indonesia's automotive industry, Toyota and Astra are joining forces for the country's used-car market. The Japanese automaker shelled out US$120 million for a 40% stake in Astra Digital Mobil, giving it part ownership of used-car marketplaces OLX and OLXmobbi. The deal comes as Indonesia's economic struggles hit its new-car sales. It dropped 13.9% in 2024 compared to 2023, according to data from the Indonesian Automotive Industry Association (Gaikindo). Overall, roughly 800,000 new cars were sold last year – less than half of the 1.8 million used vehicles sold within the same period. These are the exact areas the likes of Carro, Carsome, and Moladin have spent years and millions of dollars on. They face entrenched incumbents with deeper pockets, broader distribution, and long-standing brand trust. Now the question is this: Can these smaller players survive – and thrive – as the giants move in? BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Astra declined to comment for this story, while Toyota did not respond to Tech in Asia's requests for a comment. Big brands, bigger footprint Yannes Martinus Pasaribu, an automotive expert from the Bandung Institute of Technology (ITB), points out that used vehicles offer a more flexible, lower-cost path to expansion. But it can also be be more profitable than selling new vehicles: while gross margins for new vehicles generally range from 2% to 5%, it can reach 5% to 15% for used cars. Toyota has also ventured into the used-car trade overseas, operating an online store for used models in Japan. In the US and Singapore, it has dealerships selling certified used Toyotas. Astra has done something similar with another brand that it distributes in Indonesia: BMW Astra Used Car, a dealership focused on certified pre-owned BMWs in Jakarta. The appeal is clear. Consumers, especially those who aren't savvy, can't always assess a car's true condition. Having a vehicle certified and guaranteed by the brand itself can provide peace of mind. Currently, it's unclear whether Toyota and Astra want to build something similar. But doing so would unlock a massive market. Luxury brands like BMW appeal mainly to affluent consumers in major urban areas. Toyota, on the other hand, has had nationwide reach for decades – thanks to cheap, readily available spare parts and deep familiarity among Indonesian mechanics. Indeed, Toyota was the country's top-selling car brand in 2024. It sold 288,982 units and commanded a 33.4% market share, as per Gaikindo data. The brand also has an unparalleled offline footprint: It has over 360 dealers across 143 cities in Indonesia. ITB's Pasaribu believes it could be key to breaking into the used-car segment, particularly when it comes to building consumer trust. It's understandable as vehicles are big-ticket items, and buyers tend to consider many factors carefully before making a purchase. 'Each SKU in the used-car business represents a single unit of inventory, and the transaction is non-repetitive – especially in the retail segment,' one industry expert, who asked not to be named, tells Tech in Asia. Unlike ecommerce platforms like Shopee, Tokopedia, Grab, or Gojek – whose users open the apps multiple times a day – used-car transactions are far less frequent. 'If a customer uses a used-car platform once every three years, that's already good,' the expert adds. Carro and Carsome, for example, began primarily online. But now, they follow an online-to-offline model, operating showrooms and inspection points. The two companies have seven and nine offline points, respectively. In contrast, Astra's OLXmobbi already has more than 30 dealerships across 10 major cities in Indonesia. Adding Toyota's offline footprint would make the Toyota-Astra alliance hard to beat. Scale isn't everything Still, Toyota-Astra's advantages doesn't negate Carro's or Carsome's. Indonesia's used-car market is 'too fragmented,' the industry expert believes. 'The used-car market is so large that even combined, Toyota-Astra, Carsome, and Carro probably barely scratch the surface,' they say. Indeed, independent dealerships and individual sellers also dominate the used-car space. Most transactions still happen offline and informally. Hence, the country's used-car market is unlikely to become a winner-takes-all arena. Jongkie Sugiarto, chairman of Gaikindo, explains that while legacy players already have strong distribution networks, they're often limited to the brands they represent. In contrast, startups aren't tied to specific manufacturers, allowing them to buy and sell across a wider range of brands. Carro and Carsome also certify the cars they sell based on thorough inspections and specific quality standards. 'Carsome's focus has always been on building trust through consistency – whether in how we inspect or refurbish vehicles,' says Aaron Kee, the company's chief business officer. One of the most important components in used-car transactions is financing. In 2022, around 70% of car purchases in Indonesia were made through credit. Riyanto, a researcher from the University of Indonesia, believes startups can offer more flexible financing integrations. Traditional players tend to have more rigid and complicated financing schemes. Most used-car marketplace platforms in the country – including Carro, Carsome, and Moladin – have embedded financing features into their platforms. But so does Astra, which offers car loans through Toyota Astra Finance with its Japanese partner. BMW Astra Used Car also provides an example of what Toyota-Astra can do: It offers financing at new car interest rates. Typically, these can be as much as 50% lower than interest rates imposed on purchases of used vehicles. The real battle: profit While Indonesia's macroeconomic woes have made used cars more attractive than new ones, it doesn't mean used-car sellers are completely unaffected by market lulls. 'Some used-car dealers have observed a slower pace of business in recent months,' Carsome's Kee says. Following Toyota's investment, some expect OLX to burn cash acquiring vehicles for its inventory. Carro and Carsome, however, may not have the same appetite, with both companies eyeing potential IPOs. Both firms have also turned EBITDA positive. Carro reported an EBITDA of around S$40 million (US$31 million) for the financial year ending March 2025, according to The Business Times. The company is aiming for one final funding round this year before pursuing a public listing. Its rival, Carsome, posted an EBITDA of US$4.3 million for the first quarter of 2025. It achieved full-year profitability with an adjusted EBITDA of US$10.5 million in 2024. Khailee Ng, managing partner at 500 Global, one of Carsome's investors, believes the entry of large players like Toyota can help grow the overall customer base, creating even more opportunities for startups. 'Time and time again we've seen that fast is better than big,' he says. 'Advantages come from resourcefulness, not just resources.' On the other hand, startups innovate new products more easily. For instance, Carro has recently expanded into the B2B space by offering new vehicles to private-hire drivers. The anonymous industry expert argues that smaller players also have advantages in unit economics. Smaller companies, according to the source, can fine-tune their cost structure without resorting to disruptive actions like mass layoffs. 'The company needs smaller numbers to hit profitability,' they explain. Ultimately, the competition won't come down to size alone. As funding becomes harder to secure and legacy players step in, startups that focus on efficiency, adapt to market changes, and maintain customer trust may still find room to grow. TECH IN ASIA
