Honda Unwilling to Conduct Mass Layoffs Despite Sluggish New Car Market

KatadataOTO – The new car market has been hit by a major storm from January to June 2025, causing sales to correct quite deeply.

Processing data from the Association of Indonesian Automotive Industries (Gaikindo), the total retail sales from January to June 2025 were only 390,467 units.

If observed, the figure above has dropped by 9.7 percent compared to the same period last year.

If this situation does not improve, the four-wheeled vehicle industry will face even worse things.

Photo : TrenOto

For example, the threat of bankruptcy leading to layoffs (PHK), as seen in other domestic industries.

Nevertheless, Honda Prospect Motor (HPM) is committed to maintaining their operational stability.

This includes efforts to retain all of Honda's current workforce.

"The market is currently down, but we are still trying. As of now, there are no plans to reduce the workforce," said Yusak Billy, Sales & Marketing and After Sales Director of HPM, when met at GIIAS 2025.

Billy assessed that Honda is actively monitoring the market and the four-wheeled vehicle industry developments in Indonesia.

They want to see to what extent new car sales in 2025 can recover.

Then Honda also wants to ensure the sustainability of its factory and supply chain is maintained amidst the current uncertain situation.