Daihatsu Hopes Government Will Provide Incentives to Boost Purchasing Power

KatadataOTO – Economic uncertainty and various policies in the automotive sector have greatly influenced the four-wheeled vehicle industry in the country.

PT ADM (Astra Daihatsu Motor), as one of the manufacturers selling entry-level vehicles, has also felt the impact.

This is because the majority of Daihatsu car buyers are first-time car buyers or are switching from two-wheeled vehicles, and they typically make payments through credit or installments.

However, the rise in layoffs (PHK) and an economic condition that has not fully recovered have caused the number of NPLs (Non-Performing Loans) or bad loans to increase.

Photo : Special

Many people are unable to meet their credit payment obligations on time due to economic challenges.

“For first-time car buyers, the (credit requirements) have become stricter,” said Sri Agung Handayani, Marketing and Corporate Communication Director of PT ADM in Tangerang, Sunday (18/05).

One of the factors influencing bad loans is the lack of economic improvement among the middle-class community.

Unstable incomes prevent consumers from making timely payments. Agung emphasized that this series of problems is a macroeconomic issue and not limited to the automotive sector. 

“So we hope for macro policies that support all industries. The impact would be to increase purchasing power again for basic necessities, as well as for needs above that,” said Agung.

The intended policies are not specifically in the form of incentives or subsidies for the automotive industry alone. They should be able to boost the economy as a whole and improve purchasing power, including for four-wheeled vehicles.

Photo : KatadataOTO

Facing this situation, Agung revealed that Daihatsu will focus on offering vehicles with competitive price tags and credit sales promotions, especially in areas outside major cities which are their target market.

For example, a program waiving administration fees for car purchases on credit, valued at around Rp 2.5 million to Rp 3 million.

Some of the current mainstay models for sales include the Sigra, which is a seven-seater LCGC (Low Cost Green Car), offered at a price below Rp 200 million.