The Culprit Behind Sluggish LCGC Car Wholesales in 2025

KatadataOTO – The new car market in Indonesia is truly very sluggish. This has been happening from January to June 2025.

One of the affected segments is the Low Cost Green Car (LCGC) in the country.

This condition has become a concern for many parties. One of them is Astra Daihatsu Motor (ADM).

According to this Japanese manufacturer, there are a number of factors that have made LCGC wholesales (shipments from factory to dealer) lackluster.

Photo : KatadataOTO

"The decline in LCGCs is more influenced by the purchasing power in Indonesia, which has not yet improved," said Sri Agung, Marketing Director and Corporate Communication Director of ADM at GIIAS 2025.

Then according to Agung, non-performing loans (NPL) or bad debts are also a culprit.

"So the purchase requirements for a Down Payment (DP) are not like they used to be," he continued.

Furthermore, Agung stated that LCGC cars often target first-time vehicle buyers or first car buyers.

Where most of their purchasing activities use a credit scheme or installments over a certain period.

"Lately, there have been many layoffs; on average, our buyers are a balance of those who work in the formal and non-formal sectors," Agung added.

With weakening purchasing power and widespread mass layoffs (PHK), it is not surprising that LCGC wholesales have plummeted.

Even so, Agung remains confident that the LCGC market condition can recover in the near future.

Considering this type of four-wheeled vehicle is claimed to be almost evenly distributed in every region. Consumers are looking for products with affordable prices.

"Daihatsu focuses on first car buyers because we are committed to increasing motorization. Not second buyers who are additional or replacement," Agung emphasized.

For your information, based on data from the Association of Indonesian Automotive Industries (Gaikindo) in June 2025, the distribution of LCGC cars from factories to dealers only reached 8,308 units.

If examined more closely, the figure above shows a decrease of about 10.8 percent compared to May 2025.

Photo : Toyota

Considering that throughout the fifth month of 2025, LCGC car wholesales managed to record a figure of 9,321 units.

LCGC wholesales in June were the lowest in 2025. A warning to all parties that the automotive industry is not doing well.

Therefore, policymakers or the government must move quickly to stimulate the four-wheeled vehicle industry in the country.