Chery Denies There's a Car Price War in Indonesia

KatadataOTO – Honda was in the spotlight after launching the latest HR-V with additional features but a lower price. 

The highest HR-V variant is equipped with hybrid technology and its price has been successfully kept below Rp 500 million. The model is also a CKD (Completely Knocked Down) unit.

Honda's decision to lower the HR-V's price despite adding more technology has become an interesting point for many parties.

This price-slashing strategy has actually been implemented several times by Chinese manufacturers, including PT CSI (Chery Sales Indonesia). Most recently, the new versions of the Omoda 5 and E5 are being sold for Rp 50 million to Rp 100 million cheaper.

Photo : KatadataOTO

During the launch of the Chery C5, Chery also mentioned a competitor, suspected to be Honda, for adjusting the price of their latest model and claimed they could do the same.

When asked about the heating up of the car price war in Indonesia after the HR-V Hybrid launch, PT CSI denied it.

“We are not looking for a price war. It is our responsibility to make the best products that can be enjoyed by more people,” said Zeng Shuo, Vice President of PT CSI in Jakarta, Wednesday (25/06).

Chery calls the current phenomenon an innovation war, where manufacturers compete to present cars with capable technology at increasingly affordable prices.

“That’s what I see. It’s not a price war, but more about understanding consumers,” Zeng Shuo emphasized.

Additionally, the models under the Omoda sub-brand are currently popular in the European and Australian markets.

Therefore, Chery's car production is done on a large scale, which can ultimately reduce the final selling price.

Photo : KatadataOTO

“That is also one of the reasons. Because for us, with the same platform (Chery C5 and E5), over 70 percent of all components can be shared,” he said.

Chery emphasized that the price reduction, especially for the E5 electric car, is possible because the development of electrification technology is becoming more advanced.

“ICE (Internal Combustion Engine) technology is already very settled, so development is a bit difficult. But EV (Electric Vehicle) is a new ‘toy’, there is a lot of room for improvement,” said Budi Darmawan, Sales Director of PT CSI on the same occasion.