Hyundai Highlights Positive Sales of Luxury Cars in Indonesia

KatadataOTO – The domestic automotive market still has to face various economic challenges, impacting the weakening of public purchasing power.

As a result, the vehicle segment targeting lower-middle-class consumers and those sensitive to price changes is the most affected by this phenomenon.

On the other hand, cars priced at Rp 300 million and above are actually in demand. This is because their consumers do not face economic obstacles or installment constraints.

Thus, vehicle purchases are more easily supported, due to different financial conditions.

Photo : KatadataOTO

“So the Santa Fe, Palisade, they have recorded quite good sales for us,” said Fransiscus Soerjopranoto, Chief Operating Officer of PT Hyundai Motors Indonesia (HMID) when met in Tangerang some time ago.

Looking at data from the Association of Indonesian Automotive Industries (Gaikindo), the latest wholesales figure (distribution from factory to dealer) for the Palisade was 116 units throughout July 2025.

That figure is above the Santa Fe, which is sold at a lower price starting from Rp 600 million. Its wholesales only reached 16 units.

To reinvigorate the segment below the Santa Fe and Palisade, Frans highlighted the importance of good financing facilities for consumers in that class.

Then Hyundai will also adjust its strategy and sales targets for 2025, following market dynamics.

“In the conditions of the first quarter, the past second quarter, we saw a downward trend in the market. That's why we are adapting; a strategy cannot remain the same,” Frans affirmed.

From an economist's point of view, the decline in sales in the lower-middle segment is due to its consumers being sensitive to inflation and interest rates.

Photo : Courtesy

Then there is a trend of aspirational buying in the upper class, due to many new models, such as electrified vehicles in the Rp 300 million price range.

As a result, many people in that segment are investing their money in gold instead of goods or assets like cars.

“That makes the price-sensitive segment very fragile, including new LCGC and Low MPV models,” said Josua Pardede, Chief Economist of Permata Bank to KatadataOTO on a different occasion.