Honda sales decline in Indonesia deepens as dealership closures rise
Thekabarnews.com—Honda used to make some of the most popular cars in Indonesia. Sales are low right now, and vehicle dealerships are closing all throughout the country. The Association of Indonesian...
Thekabarnews.com—Honda used to make some of the most popular cars in Indonesia. Sales are low right now, and vehicle dealerships are closing all throughout the country.
The Association of Indonesian Automotive Manufacturers (Gaikindo) estimates that Honda’s total car sales in 2025 fell a lot to roughly 71,000 units.
This was one of the worst years for sales in over ten years. The number is a giant reduction from its peak years, when sales were over 190,000 units a year in 2016.
The company did well for a while following the COVID-19 outbreak, but recent information reveals that the trend is starting to go down again.
Honda’s sales have been going down since 2018. There are more cars for sale in Indonesia, and people’s tastes are changing.
The problem has hurt Honda’s store network as well. In the last several months, many dealerships have closed, even in important towns like Bandung, Surabaya, Bekasi, and Tangerang.
Some old Honda dealerships will start selling new cars from Chinese companies that are fresh to the market. This move signifies that the market is going through a giant change; Honda has struggled to succeed in markets where it previously performed well, such as Indonesia.
The Honda Pondok Pinang dealership in Jakarta closed in early April 2026. The store is closing because the brand is not doing well.
They used social media to let everyone know about the announcement after the business had been operational for more than ten years. The stop will have an impact on Honda’s work in the area.
Now that there are new leaders, it is much harder to move. In April 2026, Masanao Kataoka became the President Director of Honda Indonesia.
He took over from Shugo Watanabe, who had been in command for around two years. Changing the company’s leadership is one way it is seeking to improve and do better in business.
Honda’s issues are the result of a multitude of factors. There is greater competition from Japanese and Chinese enterprises, customers’ needs are changing, and there is more pressure to cut prices and come up with new items.
Many people, especially Chinese people, want to create their own businesses. Honda has had a difficult time succeeding in places where it previously performed well, such as Indonesia.
This trend is because more people want to buy things, and their tastes have changed. Honda is still known all over the world. It has a lot of money and knowledge; therefore, it can address these problems.
The corporation will only be able to go back to Indonesia if it can adjust to changing market conditions, come up with better models than its competitors, and enhance its distribution network.
By closely observing Honda in the coming years, you can gain valuable insights into how large corporations navigate increased competition and industry changes, particularly in the areas of innovation strategies, market adaptation, and operational efficiency.
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