Source: VOI
Unveiling a new era of automotive excellence, PT Honda Prospect Motor proudly announces the launch of the All New Honda Accord. This premium sedan marries the cutting-edge e:HEV hybrid technology with the dynamic flair of the RS variant design.
Debuted in Jakarta on December 7, 2023, this remarkable vehicle sets a new benchmark in the luxury sedan market. Priced at an impressive IDR 959,9 mn, almost touching the one billion mark.
Over the past decade, Japanese-made cars like Accord and Camry have seen significant price increases, with average increases of 5.7% and 6.3% every year for Accord and Camry respectively in the past 10 years, higher than 10 years average Indonesia's CPI at 4%.
Source: Sucor Sekuritas
A decade ago, the price difference between Accord or Camry and the BMW 3 Series ranged from 39%-43%. Today, this gap has shrunk to just about 23%-24%.
In contrast, last September, Omoda launched its premium crossover SUV, equipped with a 1,600 Turbo engine in two variants: the Front Wheel Drive at IDR 448,8 mnand the All Wheel Drive at IDR 488,8 mn. This introduction positions Omoda competitively against rivals like the Honda HRV.
Priced IDR 100 mn lower, Omoda offers more powerful engine with 200 HP, much higher than Honda HRV’ most expensive variant which only has 180 HP.
Furthermore, Omoda also boasts an interior quality on par with German automobiles, making it a superior choice in terms of both features and value.
Source: Honda Indonesia, Chery
With lower pricing, coupled with more features offered, make Chinese cars increasingly appealing to Indonesian consumers. Because of this, Japanese brands might face serious challenges.
Chinese cars like Wuling and Chery, which have made an impact not just with their EV but also with their conventionally powered models, offering competitive pricing that significantly undercuts the market.
Source: Wuling, Chery
This new competition introduces a fresh dynamic, challenging established players and altering consumer choices in Indonesia car market.
Source: Gaikindo
Looking ahead, the demand for Chinese cars in Indonesia is poised to continue its upward trajectory.
The unit sales of ASII in 2013 compared to 2023 have shown a stagnation, even trending downwards.
Source: Astra International, Sucor Sekuritas
In our view, if Japanese car manufacturers continue to raise prices higher than inflation without improving efficiency, the penetration of Chinese cars into the market could occur faster than anticipated.
This trend is not limited to EV but also extends to combustion engine cars, where Chinese models may offer more competitive pricing and features.