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Jakarta Post

Plastic crunch threatens auto production, fuels price pressures

Carmakers warned that prolonged disruptions could affect deliveries to dealers and customers.

Maudey Khalisha (The Jakarta Post)
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Jakarta
Mon, April 13, 2026 Published on Apr. 13, 2026 Published on 2026-04-13T13:13:43+07:00

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Employees work on an electric vehicle (EV) production line on May 22, 2024, at a factory under joint venture Jiangling Group Electric Vehicle (JMEV) in Nanchang, Jiangxi province, China. Employees work on an electric vehicle (EV) production line on May 22, 2024, at a factory under joint venture Jiangling Group Electric Vehicle (JMEV) in Nanchang, Jiangxi province, China. (Reuters/Kevin Krolicki)

T

he automotive industry is facing mounting supply chain risks due to global plastic shortage, driven by rising petrochemical feedstock prices and logistics disruptions.

Sales, Marketing and After Sales operations director of PT Honda Prospect Motor (HPM) Yusak Billy said the company was monitoring the situation closely and adjusting its operations to maintain production stability.

“In recent months, there have been dynamics in logistics processes and costs across several areas within the global automotive supply chain,” Billy said, as quoted by Kompas.

Plastic materials are widely used in vehicle manufacturing, from interior components such as dashboards and door panels to parts in the engine compartment, therefore, disruptions in the supply of polymer-based materials can slow assembly lines and delay production.

Billy said Honda was evaluating supply planning for several models and making adjustments to ensure a balance between supply and demand, with the aim of minimizing delivery delays to customers.

However, he warned that prolonged disruptions could affect distribution at the retail level.

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“If these dynamics continue, there is a possibility of adjustments in vehicle distribution to our dealers,” he said.

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