Indonesian auto manufacturer seeks to survive amid COVID-19
PT Astra International, one of the leading automobile manufacturers in Indonesia, is looking to adopt new survival strategies, including cutting operational costs and increasing its digital presence, in the face of slumping vehicle demand worsened by the COVID-19 pandemic.
The headquarters of Astra (Photo: https://www.acc.co.id/)Jakarta (VNA) - PT Astra International, one of the leading automobile manufacturers in Indonesia, is looking to adopt new survival strategies, including cutting operational costs and increasing its digital presence, in the face of slumping vehicle demand worsened by the COVID-19 pandemic.
Astra, whose subsidiaries accounted for about half of the country’s domestic car sales in 2029, saw its automotive sales drop by 91.2 percent year-on-year in April to 3,807 units, according to the Association of Indonesian Automotive Manufacturers (Gaikindo).
The steep drop has led Gaikindo to slash its annual sales target by 40 percent to 600,000 vehicles in 2020, said Astra’s chairman Yohannes Nangoi at a recent online discussion.
Indonesia’s automotive industry already experienced a slowdown last year. It sold 1.03 million vehicles in 2019, a 10.8 percent drop from 2018.
Director of Astra Henry Tanoto said to weather the crisis, the company had adjusted its supply chain and modified its cash flow in the face of the slumping demand as a short-term strategy.
Astra also hopes to expand its mobile services and boost its digital presence, as it anticipates a higher number of online vehicle purchases in the post-pandemic market, he added./.
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