New Products Pose a Major Challenge to the LCGC Car Market in 2025

KatadataOTO – The Low Cost Green Car (LCGC) market seems helpless in 2025. Its performance is still far from many parties' expectations.

The Association of Indonesia Automotive Industries (Gaikindo) revealed that there are a number of challenges for these affordable four-wheeled vehicles.

"LCGC is also affected by the entry of new brands or models," said Jongkie Sugiarto, Chairman I of Gaikindo to KatadataOTO, on Monday (13/10).

Jongkie stated that the new cars entering the Indonesian market are eroding the LCGC segment.

Photo : Toyota Astra Motor

Because they are able to encourage people to turn away from the Daihatsu Sigra, Toyota Calya, and others.

Moreover, the new products being sold have very competitive price tags. Making domestic consumers even more tempted.

Unfortunately, Jongkie did not specify which four-wheeled vehicles are disrupting the LCGC car market.

However, it appears that the BYD Atto 1 is said to be capable of challenging the performance of the Honda Brio Satya and Toyota Agya.

Especially since the Electric Vehicle (EV) from China is sold at a fairly affordable price, starting from around Rp 195 million.

Where the figure above is very close to the price of LCGC cars sold in the country.

In addition, the BYD electric car is claimed to have received a positive reception since its launch at GIIAS 2025.

LCGC Car Market Continues to Decline

For your information, according to Gaikindo data in September 2025, the distribution of LCGCs from factory to dealer (wholesales) was only 7,795 units.

The figure above saw a significant correction, namely 5.7 percent compared to 8,270 units in August 2025.

Meanwhile, the cumulative wholesales of LCGC cars from January to September 2025 were around 89,051 units.

The data above illustrates that the economic conditions in Indonesia have not yet recovered towards the end of the year.

Considering these four-wheeled vehicles are quite popular among the lower-middle class in the country.

This indicates that the purchasing power of the lower-middle class for vehicles is severely disrupted.

Photo : KatadataOTO

"Indeed, the public's purchasing power has not returned to normal," said Jongkie.

Policymakers must immediately give special attention. Because a situation like this cannot be allowed to drag on.

As it has the potential to bring even greater negative impacts. Especially for the automotive sector and state revenue.