Hyundai Admits Surprise Over Astra Peugeot's Withdrawal from Indonesia

AUTOMOTIVE - JAKARTA. PT Hyundai Motors Indonesia (HMID) has spoken out about several car brands deciding to discontinue their sales in the country.

The latest is the French car brand Peugeot, which has decided to cease sales after 52 years in Indonesia.

Chief Operating Officer (COO) of PT Hyundai Motors Indonesia (HMID), Fransiscus Soerjopranoto, said that Peugeot's move was quite surprising. 

“This is quite surprising, where Astra International is ceasing Peugeot sales. Of course, this is not desired by anyone, including Hyundai. Especially since we hope that the Indonesian automotive market should be number 1 in Southeast Asia. The increasingly tight competition prompts us to always provide the best for customers in Indonesia,” Fransiscus revealed when contacted by Kontan.co.id, Friday (03/05).

Regarding this phenomenon, he added that lately the Indonesian automotive market does indeed seem sluggish. Especially since the depreciation of the Rupiah against the US Dollar. 

“This also triggers an increase in interest rates that affect credit buying interest. It can be ascertained that this year the Indonesian automotive market will be below last year, even below 1 million units. However, Hyundai still sees the Indonesian automotive market having the potential to rise again after the new government is formed,” he added.

Nevertheless, he said that Hyundai remains optimistic about this year's developments and is therefore brave enough to set sales targets that follow market conditions with a market share above 3%.

He also acknowledged that the presence of Chinese car manufacturers adds to the market dynamics, especially in terms of how Hyundai can compete in the Indonesian automotive market. 

“For example, in selling electric cars in Indonesia, Hyundai does not just sell promises or order papers, but we provide proof of better service and experience to Hyundai electric car users with the presence of more than 200 charging stations,” he explained. 

As additional information, Hyundai sales in Indonesia, based on data from the Association of Indonesian Automotive Industries (Gaikindo), are still in the top 10. From the wholesale side, Hyundai managed to sell 35,500 units throughout 2023, plus retail sales with a figure of 35,736 units.