Warning Signs from Automotive Industry Slowdown Could Hit Financing Sector Hard

Warning Signs from Automotive Industry Slowdown Could Hit Financing Sector Hard

Declining car sales and purchasing power in Indonesia during Q1 2025 are impacting the automotive financing sector, signaling deeper challenges for the economy.

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Sabtu, 19 April 2025 | 05:00

Bisnis.com, JAKARTA – The decline in purchasing power for four-wheeled vehicles signals a potential warning for the automotive industry, particularly in the financing sector. The expected boost in consumption during the Ramadan period did not materialize as anticipated, failing to strengthen market sentiment.

The automotive sector's lackluster performance coincided with sluggish financing activity. In parallel, the Central Statistics Agency (BPS) reported a disinflation trend, with a decrease in the annual inflation rate for March 2025, aligning with the Ramadan month.

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