Automotive Manufacturers Prepare for Production Cutbacks

Motor vehicle brand agents are poised to take radical steps if sales decline. Yusak Billy, Sales Marketing and After Sales Manager of PT Honda Prospect Motor, stated that Honda Prospect Motor is prepared to adjust the quantity of car production in line with the sluggish market in the first quarter of 2024. "We will continue to monitor the developments in the national automotive market and adjust the production volume according to market conditions," he said, as quoted by Bisnis Indonesia on Tuesday, Apr. 16.

According to Yusak, the sluggishness of the automotive market in January-March 2024 was influenced by political and economic conditions. He cited factors such as the continuous depreciation of the rupiah and tightening credit for car purchases. He did not deny that these conditions would affect Honda's sales, especially the Honda Brio city car model. The reason is that 60-70 percent of Honda Brio buyers use financing schemes from financing companies.