Judul : China Car Price War in Indonesia, Competition Intensifies
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China Car Price War in Indonesia, Competition Intensifies
Best for you JAKARTA - Some Chinese car manufacturers have been observed lowering the selling prices of their cars in Indonesia. Not surprisingly, the price reductions can reach tens of millions up to nearly hundreds of millions of rupiah.
The price reduction occurred amid a sluggish domestic automotive market, indicating increasingly intense competition among brands.
According to Gaikindo data, during January-May 2025, total wholesale car sales decreased by 5.5% year-on-year (yoy) to 316,981 units, compared to 335,405 units during the same period in the previous year.
Meanwhile, retail car sales, that is, from dealers to consumers, decreased by 9.2% to 328,852 units, compared to 362,163 units in the first five months of 2024.
One of the Chinese manufacturers cutting prices is Chery. When it first launched the Omoda E5 in February 2024, the Chinese electric vehicle manufacturer priced it at Rp498.8 million for on the road Jakarta.
Now, Chery has dropped the Omoda name, so it is now called Chery E5 and the vehicle's selling price has significantly decreased to Rp399.9 million. Even for the Pure variant, the price now starts at Rp369.9 million, meaning the price reduction is almost Rp100 million.
BAIC Turun Nearly Rp100 Million
Besides that, another Chinese brand that cut prices is BAIC. The locally assembled BJ40 Plus model is much cheaper compared to the fully imported one, dropping from Rp790 million to Rp698 million, a decrease of Rp92 million.
Dhani Yahya, Chief Operating Officer BAIC Indonesia, said that the decrease in the price of the locally assembled BAIC BJ40 Plus is not due to the reduction of features, but because there is no import tax to be paid.
"So this is how it is: if friends know the difference in prices within the country compared to the country of origin in the automotive industry, the most important factor is the import tax that applies," said Dhani Yahya after the launch of the first local production of BAIC BJ40 Plus in Purwakarta, West Java, Monday (2/6/2025).
She continued that, the vehicles brought from their country of origin as a whole, have many layers of taxes to be paid, so the price can be very different from the price in their country of origin.
Jetour Twice Cut Price
Finally, the Chinese automotive manufacturer PT Jetour Motor Indonesia has also reduced the selling prices for two of its flagship sport utility vehicles (SUVs), namely Jetour Dashing and X70 Plus.
Marketing Director PT Jetour Motor Indonesia Moch Ranggy Radiansyah said that the price of Jetour Dashing Journey has now dropped to Rp348.8 million and Jetour Dashing Inspira with an On The Road (OTR) Jakarta price of Rp379.8 million.
In addition, the Jetour X70 Plus Journey variant is priced at Rp359.8 million, and the Jetour X70 Plus Inspira variant is priced at Rp389.8 million. According to Ranggy, the reason is due to the efficiency of the supply chain.
"Jetour is committed to continuously improving every aspect of its products to become more valuable and closer to the needs of the Indonesian community, one of which is through optimizing the supply chain process," said Ranggy in his statement on Tuesday (6/17/2025).
It is noteworthy that Jetour has started local completely knocked down (CKD) production at PT Handal Indonesia Motor (HIM) factory for the Dashing and X70 Plus models since October 2024.
Although, when it was first launched, the Jetour Dashing was priced at Rp389.8 million, while the Jetour X70 Plus was priced at Rp414.8 million. As a result, so far, Jetour has adjusted its prices twice.
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