Judul : Suzuki's Strategy to Face the Chinese Car Price War with Indomobil
link : Suzuki's Strategy to Face the Chinese Car Price War with Indomobil
Suzuki's Strategy to Face the Chinese Car Price War with Indomobil
Best for you , JAKARTA — Struggle Chinese mobile phone The competition for the Indonesian market is getting fiercer. Some manufacturers are not hesitant to adopt price-cutting strategies to attract consumers' interest.
Price war phenomenon of Chinese cars is happening amid sluggishness motor vehicle market domestic, indicating the increasingly fierce competition among brands.
To be known, Gaikindo recorded throughout January-May 2025, total Car sales Wholesales fell 5.5% year-on-year (yoy) to 316,981 units, compared to the same period in the previous year which was 335,405 units.
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.
Citroen, as a French car brand, also responds to the phenomenon of many Chinese cars cutting their prices in the Indonesian market. Citroen has returned to Indonesia through PT Indomobil National Distributor, which is under the umbrella of PT Indomobil Sukses International Tbk. (IMAS)
CEO Indomobil National Distributor Tan Kim Piauw said that the company sees the price-cutting trend among Chinese car manufacturers will inevitably occur in Indonesia, either quickly or slowly. After all, this phenomenon has already occurred in the Chinese market and other countries.
"Because the issue regarding Chinese products continuously undercutting prices has already occurred in China and in some other countries. So, now it is happening in Indonesia," said Tan Kim Piauw in Jakarta, Monday (7/7/2025).
As a result, the company had already predicted this would happen. According to them, all products from each brand have their own strengths.
"As I mentioned, Citroen does not sell the product with a low base price, but we sell it with the comfort technology. So that is indeed the uniqueness, and I can say that most customers who choose Citroen are looking for a comfortable car," he said.
In his opinion, this price-cutting trend has both positive and negative impacts on the national automotive industry. The positive side is that this trend can revitalize the market and increase attractiveness for consumers who want to buy electric cars at low prices.
However, its negative impact may cause disappointment among consumers who have already bought the product at a higher price. As a result, Citroen admits that it is still studying the strategy to be applied, while improving product quality and comfort.
Yes, we have reached today still wait and see "Currently, we are still continuing to improve the comfort of our cars," he concluded.
Suzuki strategy
Meanwhile, Japanese automotive manufacturer, PT PT Suzuki Indomobil Sales (SIS) admits being unwilling to follow the price-cutting strategy.
Deputy Managing Director of 4W Sales & Marketing PT Suzuki Indomobil Sales (SIS) Donny Saputra emphasized Suzuki It will prioritize strategies to improve the quality or value of its car products, so that consumer trust remains maintained.
"No, we hope that cutting prices at other brands is the strategy they are doing. From our side, we think that product and service quality is what we must maintain well," said Donny in Jakarta, as quoted on Monday (7/7/2025).
According to Donny, the phenomenon of price wars in the automotive industry has actually been happening since the 1980s. However, currently, with the entry of many new players, there are now nine models in one segment, leading to increasingly intense competition.
Donny explained that competition in the automotive industry is not just about price wars. According to him, manufacturers can also compete in product types, service, after-sales service, and so on.
"Until now, we do not plan to cut the prices of our models. There may be sales programs, but not price cuts," he emphasized.
Furthermore, he said Suzuki's activities in the country have been going on for a long time, since 1970, which is already 55 years. As a result, Suzuki will continue to focus on maintaining the quality of its vehicle products.
"We will not sacrifice quality. In this case, it is the quality of our products and the quality of our service, only to cut prices for short-term interests, compared to the relationship we will build with consumers in the long term," he concluded.
Meanwhile, Suzuki has launched the new SUV coupe model, Suzuki Fronx, which is targeted to become the backbone of domestic and export sales.
Suzuki Fronx is priced from Rp259 million to Rp319.9 million on the road (OTR) in Jabodetabek. The model has been locally produced at Suzuki Cikarang Factory and has a domestic component value (TKDN) of 60%, which will be gradually increased.
Banting Price
According to Business records, some Chinese car manufacturers have indeed cut their car prices in Indonesia. Some of these brands include Cherry, BAIC, and Jetour.
One Chinese car manufacturer, Chery, has cut the price of one of its electric vehicle models by nearly Rp100 million. When the Chery Omoda E5 was first launched in February 2024, the Chinese electric car 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 selling price of the vehicle 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 nearly Rp100 million.
Besides that, another Chinese brand cutting 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 drop in price of the locally assembled BAIC BJ40 Plus is not due to feature cuts, 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 in a whole condition have many layers of taxes to be paid, so the price can be very different from the price in their country of origin.
Price-cutting strategies are also carried out by Chinese automotive manufacturer PT Jetour Motor Indonesia. Jetour has 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 stated that the price of Jetour Dashing Journey has now dropped to Rp348.8 million, and the Jetour Dashing Inspira is priced at Rp379.8 million On The Road (OTR) Jakarta.
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. The reason, according to Ranggy, 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 production secara completely knocked down (CKD) at PT Handal Indonesia Motor (HIM) for Dashing and X70 Plus models in October 2024.
Although, when 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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