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Predatory pricing and impact action on the Indonesian automotive industry

Clubnet Digital Clubnet Branding Identity Marketing

Jakarta, shesocial Indonesia

Toyota
Open the sound about the “Slimption” phenomenon of a car that has occurred for some time in Indonesia.This Japanese automotive giant said that the practice not only had a negative impact on the industry, but also on the sustainability of the workforce to the national automotive support ecosystem.
Bob Azam, Vice President Director of Toyota Motor Manufacturing Indonesia (TMMIN) said the domestic automotive industry has the opportunity to face a serious risk if the ‘sin’ of this price competition is not properly guarded.
“So the industry must compete, because competition will benefit consumers, that is the law. But there is a second law, competition must be maintained, healthy competition. Now the competition is not healthy, which refers to prices and ecosystems,” Bob said last week met at GIIAS 2025, ICE BSD.
The national automotive industry is currently being shocked through the rise of truncated cars from a number of Chinese brands such as Mg, Baic, Neta, Jetour.The difference in price decline varies, ranging from tens to hundreds of millions of rupiah from the initial official tag was launched.
In the midst of the busy life of the Chinese automotive company the price of the selling car, suddenly byd launched its cheapest electric car, Atto1 which was sold for Rp195 million and Rp235 million.
The OTR price is cheaper than the determination of the selling value of Motorized Vehicles (NJKB) BYD products with EQ-ETD-1 coded allegedly Atto 1 which is Rp218 million and Rp233 million.
Toyota said what is happening now has the potential to be an unhealthy competition that leads to
predatory pricing
, namely the strategy to reduce prices to very low as an effort to win or get rid of competitors.
“So practice the name,
predatory pricing
It must be avoided, or prohibited.Not only in Indonesia, but in some countries it is prohibited.Even in China themselves they are costicious with such phenomena, “he said.
He warned that if this phenomenon was left, the automotive industry would be able to accept negative impacts on all aspects.
“Now this must be fast, not to get the industry, then go to the first. Because later he will hit the use car (used car) industry, where in us there are 1.8 million (market potential) and that also absorbs labor, after market, there are workshops and so on. That is broad impact,” Bob said.
“So okay, it looks like consumers will enjoy (slam the price, but that) is short -term, long term he will pay. Even though only a small portion of our consumers,” he added.
He also hopes that the government can take a stand with the potential for unfair competition in the Indonesian automotive industry which is allegedly running.
“How our industry is protected from the practice of predatory pricing because it is not healthy, down prices, the industry is destroyed, yes he only becomes the player. That must be guarded by the regulator,” he said.
More than that Bob also warned the other impact of efforts to build the independence of the national electric car industry.This is reflecting on the value of electric car components that are far less than conventional products, so that it becomes an opportunity for the sustainability of labor in the future.
For him also the automotive industry that has been running for a long time in Indonesia, is considered to have many advantages because it can produce global competitive products.
“So back again as long, ev me
Create New Market
, industry, and not vice versa instead killing the industry.
Its
Okay that’s technology.Which do not, the development (EV) kills the existing industry.Continue to say our industry is not efficient.Even though our industry can already export.If it’s not efficient, you can’t export it, “Bob concluded.
(Ryh/Mik)
[Gambas: shesocial video]

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