Toyota to Hold Car Prices to Boost Sales

KatadataOTO – Car sales entering 2025 are still sluggish, with figures even dropping from the achievement in the same period in January 2024.

For context, wholesale figures (distribution from factory to dealer) for January 2025 were 61,843 units, while in January 2024 they were 69,758 units. Meanwhile, retail sales fell from 78,437 units to 63,858 units.

This is considered to need more attention, given that the automotive industry contributes significantly to the national economy.

The Ministry of Industry has even suggested that the selling price of new vehicles could be lowered to stimulate public purchasing power.

Photo : KatadataOTO

Toyota, as one of the manufacturers in Indonesia, had also previously prepared a strategy to boost car sales. 

“We are trying to balance it by not raising the manufacturer's price. It usually increases (every year), but in 2025 the increase is purely from the tax invoice,” said Philardi Sobari, Head of PR at PT TAM (Toyota Astra Motor), when met at JIExpo Kemayoran some time ago.

He explained in more detail that several of Toyota's flagship models, such as Agya, Rush, and Avanza, have indeed experienced price increases due to the implementation of VAT (Value Added Tax) from 11 percent to 12 percent.

“If you look at the (impact of) VAT on the Agya, the LCGC price increased by around Rp 1 million. Meanwhile, the Rush and Avanza increased by around Rp 2 million,” he said.

For that reason, Toyota will try to maintain the selling price so that it remains within the public's purchasing power.

“We hope this increases public purchasing power. After an election year, automotive (sales) usually increase,” he asserted.

Incentives Offset the Increase

Photo : Courtesy

On the other hand, Toyota also enjoys the hybrid car subsidies provided by the government. Two models meet the criteria to receive the incentive: the Kijang Innova Zenix HEV and the Yaris Cross HEV.

For your information, the hybrid car incentive is given in the form of a tax cut. However, the amount is indeed smaller compared to the electric car subsidy.

The electric car incentive is 10 percent, so consumers only need to bear the remaining two percent. Meanwhile, for hybrid vehicles, it is three percent, but this is said to be enough to lower the price of Toyota's hybrid cars by up to Rp 13 million.