Hyundai Hopes Price War Subsides, to Avoid Layoffs

KatadataOTO – The rise in Layoffs (PHK) due to uncertain economic conditions in Indonesia has become a concern for all parties. 

There are various factors behind the rise in layoffs. Several manufacturers, including PT Hyundai Motors Indonesia (HMID), highlight the price war as one of the triggers.

Hyundai stated that the price war is certain to decrease the industry's profitability.

“Besides the decrease in used (car) prices, there is the profitability side. From our dealers' perspective or the brand in general, it will surely decline,” said Fransiscus Soerjopranoto, Chief Operating Officer of PT HMID in Tangerang some time ago.

Photo : Hyundai

As an undesirable situation, he emphasized the importance of profit for all related parties, from the supply chain, distributors, and dealers, so that operational costs are met.

“And so that layoffs do not occur, because profitability is good,” he asserted.

The government itself has urged several well-known Japanese automotive brands in the country not to carry out layoffs, even if conditions allow for it.

Frans emphasized the importance of profit for the company's operational and production costs so that layoffs can be avoided.

“That is what we hope for from the automotive industry,” said Frans.

For that reason, Hyundai has stated it will not get involved in the price war that is heating up in the country, especially since the arrival of Chinese brands.

At GIIAS 2025, some brands lowered the selling price of their vehicles, or launched cars with prices far lower than similar models in their class.

If this continues, many negative impacts can be felt by both the industry and the consumers themselves.

For example, resale value. Price competition has the potential to make the price of used cars plummet.

“Hyundai will not enter into a price war situation. We will focus on what we call services or the value of our service to consumers,” Frans asserted.

For your information, at GIIAS 2025 Hyundai launched the Stargazer Cartenz as an effort to boost their sales again.

The Stargazer Cartenz is a facelifted version of the previous model with a number of changes, especially to the headlights.

Photo : HMID

Then, the addition of safety features is expected to be a special attraction for Indonesian consumers.

Judging from the data from the Association of Indonesian Automotive Industries (Gaikindo), the presence of the Stargazer Cartenz contributed to Hyundai's overall wholesales (distribution from factory to dealer).

In June 2025, Stargazer's wholesales were only 173. Whereas in July 2025, it rose to 672 units and was claimed to dominate Hyundai's orders at GIIAS 2025.