At 68, Astra Remains Unrivaled in Indonesia’s Auto Market

JAKARTA, investortrust.id - PT Astra International Tbk, Indonesia’s automotive giant, marks its 68th year with an unshakable 56% share of the national car market in 2024, reinforcing its status as the country’s leading producer since its inception nearly seven decades ago. Amid economic slowdown and rising competition, the conglomerate’s strategic maneuvers keep it at the forefront of a shifting industry landscape.

Founded on February 20, 1957, by Tjia Kian Long (William Soeryadjaya), Liem Pen Hong, Parulian Nainggolan, Datu Parulas Nainggolan, and Saut Guru Pamosik Nainggolan, Astra International (ASII) posted wholesale sales—deliveries to distributors—of 482,964 vehicles in 2024, accounting for 56% of the national total of 865,723 units. In the low-cost green car (LCGC) segment, offering affordable eco-friendly vehicles, it dominated with a 74% share, selling 131,328 units.

The momentum carried into 2025, with January sales of 34,531 units against a domestic total of 61,849, retaining its 56% grip. In LCGC, it sold 9,427 units, or 68% of the national 13,782 units. Toyota and Lexus led with 291,566 units, followed by Daihatsu at 163,032, Isuzu at 26,379, UD Trucks at 1,960, and Peugeot at 27.

Despite this stronghold, Astra, listed on the Indonesia Stock Exchange (BEI) since April 4, 1990, faces mounting challenges. Economic deceleration and waning consumer purchasing power test the conglomerate, which oversees about 200 companies and employs 235,000 people across seven sectors: automotive, financial services, agribusiness, infrastructure and logistics, IT, property, and heavy equipment, mining, construction, and energy.

Yannes Martinus Pasaribu, an automotive expert from the Bandung Institute of Technology (ITB), credits Astra’s edge to its competitive strengths. “Astra can maintain, even boost, its market share by leveraging cost efficiency, government policy support, and domestic consumer preferences,” he told Investortrust.id on Friday, Feb. 21, 2025.

He elaborated on the path forward: “Adapting to global trends, international collaboration, and diversifying products to meet the needs and desires of the largest middle-low segment are key to facing increasingly tight competition.” Yannes stressed rapid adaptation, product innovation, and investments in efficient production technology and human resources as critical for Astra to stay ahead.

Emerging rivals, particularly in electric vehicles (EVs), pose a threat. Gaikindo data shows China’s Wuling topping EV sales in 2024 with 21,923 units, securing a spot among Indonesia’s ten best-selling brands. BYD followed with 15,429 units, despite being a newcomer, while Chery captured 1.1% of the market with 9,191 units. This influx eroded Astra’s share by roughly 10% last year.

Unlike competitors, Astra shuns an aggressive EV push, favoring hybrids and hydrogen as more suited to Indonesia’s market and infrastructure. “Currently, focusing on hybrid vehicles is a logical step, but Astra must not overlook the shift toward battery EVs amid rapid, uncertain market disruptions,” Yannes said.

He pointed to government incentives for EVs and hybrids as opportunities.  “Astra must innovate faster, offering value for money through affordable HEVs or even BEVs with attractive financing schemes,” Yannes said. 

Yannes sees Astra optimizing its edge in biofuel-compatible engines, hybrids, and a gradual pivot to EVs, bolstered by international collaboration and product diversification. “International collaboration and product diversification are also vital to counter global competition now in Indonesia’s local market. Astra should excel here. Collaboration between government, manufacturers, and financiers is essential for a sustainable automotive ecosystem,” he said. 

Global economic forecasts add pressure. The IMF projected growth slowing from 6.0% in 2021 to 2.6% in 2024, then averaging 2.7% in 2025-2026. Astra counters with exports to growth markets like the Philippines, Thailand, Vietnam, Africa, and the Middle East. “Astra must swiftly diversify supply chains, meet regulatory standards, and innovate to stay competitive. Outcomes remain unclear in today’s multi-faceted disruption,” he said. 

Astra’s reluctance to chase EVs stems from practical hurdles: inadequate infrastructure, high EV costs, policy uncertainty, and consumer preference for hybrids.

“Astra sees great potential in hydrogen and ICE bioethanol and biodiesel as greener, promising alternatives for the future. But it mustn’t ignore rapid short-term market shifts. With this strategy, Astra can maintain its market leadership while gradually shifting to greener technology,” he said.

The automotive line, contributing 32.4% to Astra’s total profit, remains its linchpin. President Director Djoni Bunarto Tjondro affirmed resilience: “Despite challenges, with our diversified group, we remain optimistic about Indonesia’s long-term growth and our ability to lead across business portfolios,” he recently told the press.

Astra’s legacy and adaptability position it to weather the storm and sustain its reign.