Just Losing Consumers, BYD Refuses To Get Involved In The War On Electric Car Prices In Indonesia

BYD Atto 1 became the best-selling car from this Chinese manufacturer. (Photo: Karisa/VOI)

JAKARTA Since setting foot in the Indonesian market, BYD has offered attractive prices for electric cars. The same thing is now being followed by many electric car manufacturers, making price wars occur in the Indonesian market.

One of the things that caused a stir when BYD Atto 1 launched, where the price was less than Rp. 200 million. It immediately triggered a domino effect, in which a number of other car dealers began to recast strategies, even lowering the price of their products.

Especially, for models that are smaller in size, even though previously they were sold more expensively. It doesn't stop there, market pressure is increasingly felt by the emergence of new brands that dare to play in the lower price zone.

One of them is Changan Lumin, although in dimensions, this car is smaller than Atto 1. However, the super competitive price strategy has made his name enliven the conversation in the affordable electric car segment.

However, according to PT BYD Motor Indonesia's Head of Marketing Communication Luther T Panjaitan, prices are not the only weapon to win the hearts of Indonesian consumers. One of them is by providing the best quality.

"There are several considerations, we first see the quality of the product, both brands. Consumers in Indonesia are very concerned about brands," said Luther in Jakarta, quoted on Tuesday, November 25.

He considered that cheap cars could be attractive at the beginning, but not necessarily able to answer consumer expectations in the long term if the quality and reputation of their brands had not been tested. Another factor that is considered crucial is the long-term commitment of a brand in Indonesia.

According to Luther, now consumers are increasingly careful about whether a brand is just passing through or really wanting to survive and develop. This can be seen from the after sales program provided, as well as dealers.

"Thirdly, how is the long-term program or business of the brand. It can provide consumer confidence in brands. For example, BYD, our network has built 62 showrooms and also built factories, meaning there is a guarantee of sustainability," he said.

In the midst of the heat of competition, BYD stated that he was not interested in being trapped in a price war. The strategy to hit prices is actually considered at risk of damaging the industrial ecosystem in the long term.

"So we, BYD, are brands that don't want to enter and get involved in war battles. In the end, they only destroy the industry and harm consumers," said Luther.

Instead of just playing cheaply, BYD chose to bet on the quality, network, and sustainability of the strategies they believed in. For this Chinese manufacturer, this is more relevant to Indonesian consumers who are increasingly mature in choosing electric vehicles.