Japanese car dealers turn to Chinese brands

Indonesia's automotive market has seen significant changes recently: due to the strong impact of Chinese car brands, several Honda and Mitsubishi dealerships have been forced to change their brand logos and switch to selling Chinese brands such as Chery and BYD. Automotive observers at the Bandung Institute of Technology (BIT) point out that Chinese brands are challenging the long-held market dominance of Japanese brands with more competitive pricing, advanced technological features and innovative designs.

Specific cases include the closure of Honda dealerships in Jemursari, Surabaya, Pasteur, Bandung, Triputra, Bekasi and BSD Trimegah, and the change of Mitsubishi dealerships to the Chery brand in the Cinere area of West Java. Data from the Indonesian Motor Vehicle Industry Association (GAIKINDO) showed that Honda Prospect Motor's wholesale volume continued to decline from 8,757 units in January 2025 to 3,000 units in March, reflecting the changing market landscape. This phenomenon marks a significant shift in the competitive dynamics of Indonesia's automotive industry, as Chinese brands continue to expand their market share with cost-effective strategies.