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Jakarta Post

Astra faced with new normal as new brands eat up share

  • Norman Harsono

    The Jakarta Post

PREMIUM
Jakarta   /   Thu, July 18, 2019   /  08:29 pm
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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)

The 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 m...