Gaikindo's Comments on the Price War Phenomenon at GIIAS 2025

KatadataOTO – The phenomenon of price wars is becoming clear at the GIIAS 2025 automotive event. Chinese brands are competing to offer the most competitively priced cars against other models in the same class.

Some that did not launch new products decided to cut the selling prices of their vehicles at GIIAS 2025.

One Chinese manufacturer, BYD, decided to launch the BYD Atto 1 with a starting price of around Rp 195 million.

It became a hot topic of conversation because that price tag is getting closer to the price of LCGCs in the country.

Photo : KatadataOTO

Responding to this, the Association of Indonesia Automotive Industries (Gaikindo) highlighted that there is still a positive impact that can be felt, especially by consumers.

However, it needs to be considered whether the car prices offered by various Chinese brands in the country can last long.

“There are many positive sides, we just have to see how long they can be like that. Is the price real,” said Kukuh Kumara, General Secretary of Gaikindo, to KatadataOTO on the sidelines of GIIAS 2025 recently. 

He referred to the phenomenon as price competition. According to Kukuh, manufacturers are indeed trying to release products that are within the purchasing range of domestic consumers.

Based on Gaikindo data, about 70 to 80 percent of consumers in the country buy four-wheeled vehicles with a price range of up to Rp 300 million.

So it is normal when manufacturers flock to launch products in that price range or even lower.

“(Does it) damage the market? No. If they (the brand) have done their basic research, and car buyers purchase at that price point (below Rp 300 million), and then they can bring out a product at that price, why not,” said Kukuh.

Photo : KatadataOTO

Price competition, especially in the electric car segment, can begin to change the perception that electric vehicle (EV) prices are expensive.

Therefore, he hopes the presence of various new, competitively priced products at GIIAS 2025 can also contribute to improving people's purchasing power.

“We will monitor whether this trend is going up or not,” Kukuh said, concluding his statement.