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Astra faced with new normal as new brands eat up share
Today, new and smaller brands offered better value amid tepid economic activities in the country as they rolled out cheaper cars or new features that pulled customers away from Astra’s brands, most of which were well-established ones such as Toyota, Daihatsu and Isuzu, according to industry observer Fitra.
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The two main factors that caused a decline in Astra’s market share are competition from new and smaller brands and broad-based and sluggish domestic car sales growth, according to industry players and observers. (Shutterstock/File)
T
he nation’s largest automotive company, Astra International, saw its market share decline to its lowest level in eight years at 45 percent in June, as new brands are offering better value amid overall stagnant domestic car sales.
The two main factors that caused the decline in Astra’s market share are competition from new and smaller brands and broad-based and sluggish domestic car sales growth, according to industry players and observers.
“The declining share is natural given all the new brands entering the market,” automotive industry observer and race driver Fitra Eri said.
The entry of new Chinese car brands from China, coupled with significant sales boosts at rivals Mitsubishi and Nissan against the backdrop of sluggish domestic car sales growth, have eaten into Astra’s share of the market.
Astra, founded in the 1950s by esteemed business mogul and mentor, the late William Soerjadjaja, has otherwise enjoyed market dominance for a long time as a blue chip firm.
The market share of Astra, the seventh-biggest biggest company by market value at the local bourse, steadily declined from around 60 percent five years ago to 45 percent as of June, according to the latest Association of Indonesian Automotive Manufacturers (Gaikindo) data.
Today, new and smaller brands offered better value amid tepid economic activities in the country as they rolled out cheaper cars or new features that pulled customers away from Astra’s brands, most of which were well-established ones such as Toyota, Daihatsu and Isuzu, according to Fitra.
