Honda Indonesia: The Car Market is increasingly Dynamic and Growing

JAKARTA— Honda’s car distributor in Indonesia (PT Honda Prospect Motor, HPM) has confirmed its strategy for 2026. HPM is focused on strengthening long-term relationships with customers amidst an increasingly selective and competitive automotive market. HPM President Director Shugo Watanabe noted the dynamics of the national automotive industry.

The market is increasingly challenging, while consumer expectations continue to evolve. “In every situation, Honda chooses to view the business more broadly. We don’t just focus on selling new cars,” Watanabe said in Jakarta on Tuesday, 3 March 2026.

He also noted that Honda currently has more than 1.2 million customers in Indonesia. They are the foundation of the company’s future strategic direction. Therefore, Honda is developing an approach that goes beyond mere transactions, but rather builds sustainable relationships throughout the vehicle ownership cycle.

“This is the meaning of connecting moments. We build relationships that don’t end with the purchase of the first car, but continue as long as the customer uses a Honda,” Watanabe said.

Amidst industry transformation and the electric vehicle trend, Honda emphasizes the consistency of its brand character. Watanabe stated that Honda’s identity remains anchored in the values ​​of “timeless, reliable, and performance.” This has been the foundation of the company since its inception. “Honda was built on a passion for engineering, the courage to innovate, and the belief in providing real value to people’s lives. We remain committed to these values, despite the rapid changes in the industry,” he said.

HPM Sales & Marketing and After Sales Director Yusak Billy stated that the national automotive market has experienced a gradual decline since 2022, impacting all industry players, including Honda. “For us, this isn’t just about numbers, but how to adapt in a healthy and sustainable manner,” Billy said.

According to data from the Association of Indonesian Automotive Industries (GAIKINDO), Honda recorded total sales of 56,500 units from January to December 2025. This achievement still places the Japanese brand in fifth place as the best-selling brand of four-wheeled vehicles or more in Indonesia, but its performance has slowed by 40 percent year-on-year. Meanwhile, in terms of retail sales, Honda ranked third with 71,233 units. This figure is a 30 percent decrease compared to 2024’s 103,023 units.

This dynamic aligns with the decline in the national automotive market, which weakened by around seven percent during the same period. “In 2025, Honda’s retail sales will be higher than its distribution to dealers. This is part of our inventory adjustment to the slowing market,” said Billy.

“This year, our strategy is not only focused on market penetration, but also on strengthening relationships with customers who already trust Honda. Maintaining customer loyalty is a priority,” he said. (*)