Material and Energy Prices Rise, Will Car Prices Go Up?

The automotive industry players have chosen not to increase the price of cars even though the prices of materials and energy have increased.


Automotive choose not to increase car prices even though material and energy prices have increased.

Corporate Affairs Director Toyota Motor Manufacturing Indonesia (TMMIN) Bob Azam said that the increase in material and energy prices was a challenge for the company "Yes, it's true that the increase is a factor in addition to the cost of materials also rising," he said via instant message, Sunday (22/5/2022).

"Yes, it's true that the increase is a factor in addition to the cost of materials also rising," he said via instant message, Sunday (22/5/2022). 

Bob explained that until now Toyota has not thought about adjusting the selling price for the increase. 

There are at least two things taken to keep the price of the car. He said the first strategy was to increase efficiency and productivity. The goal is to prevent cost increases.

"Secondly, price adjustments must also take into account the ability of consumers. Moreover, the economy has not fully recovered," he said.

Meanwhile, an automotive manufacturer that has returned to Indonesia and launched a new product, namely Subaru, offers the all new Subaru Forester at a calculated price. 

Subaru Indonesia Chief Operating Officer Arie Christopher Setiadharma said that when material and energy prices fell, the company would evaluate. 

"Definitely the price adjusts. If we can adjust, we adjust. Only for now is the price that put that much, "he explained. 

In Indonesia, the all new Subaru Forester was introduced with 2 trim variants. The Subaru Forester 2.0iL is offered at a price of IDR 579,500,000 on the road in Jakarta and the Subaru Forester 2.0iS EyeSight for IDR 659,500,000 on the road in Jakarta. 

Meanwhile, the Association of Indonesian Automotive Industries (Gaikindo) recorded total domestic car sales in April of 82,877 units. The realization fell 15.89 percent from the previous month. In March, total domestic sales were 98,544 units. 

Even though sales in April 2022 fell on a monthly basis ( month to month /mtm), it was still better than last year ( year to year /yty). Sales in 2021 will be 78,908 units. This means that there is an increase of 5.02 percent. 

When viewed throughout the year to April ( year to date / ytd), sales in 2022 were 346,849 units. The realization jumped significantly from the same period last year, which was 30.43 percent (265,934 units).

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