Enhancing Service Excellence in Indonesia’s Emerging Automotive Industry

Indonesia’s automotive industry is at a turning point. Amid a national car sales slowdown down nearly 11% in 2024 compared to 2023, Chinese automotive brands have shown a sharp surge, increasing their sales volume by up to 67%. In this increasingly competitive landscape, service quality emerges as a new opportunity to win over consumers. This trend signals that today’s customers are no longer focused solely on specifications and price; they are paying closer attention to the overall experience, including the sales process and aftersales service. As customer expectations grow more complex, excellent service is no longer just a value-add; it has become a foundation for building long-term customer relationships. So, what kind of service do Indonesian customers expect today, and what service strategies should vehicle brands adopt? 

Indonesia Car Industry Trend  

For years, Japanese brands such as Toyota, Daihatsu, and Honda have dominated the Indonesian automotive market. However, newer players like Wuling, BYD, Chery, and Hyundai are beginning to leverage the momentum of electric vehicle (EV) growth to establish a stronger presence. Despite the decline in total car sales in 2024, Chinese brands have recorded significant growth. In fact, three out of the five best-selling EVs in early 2025 come from non-Japanese brands. 

Figure 1: Car Sales in Indonesia by Country of Origin (2023 vs 2024)

Key Factors Influencing Customer Purchase Decisions 

Based on a MarkPlus survey of 110 car buyers in the past three years, service-related aspects have become a top priority and a key factor in the car purchasing decision. This is clearly illustrated in the Kano Model mapping shown in Figure 2. 

Figure 2: Consideration Factors (Kano Model) 

According to the Kano Model, aspects such as ease of maintenance, sales service quality, and convenience of the purchasing process fall under the performance and attractive categories, meaning that the better the performance, the greater the customer satisfaction. This confirms that customer experience, both during and after the purchasing process, is now a critical driver of preference and loyalty. Brands that aim to compete can no longer rely solely on product features, they must deliver a seamless and satisfying experience across the entire customer journey, from pre-sales to after-sales service. 

Figure 3: Pain Points in Aftersales Service Japanese vs. Non-Japanese Brand Owners 

Currently, both Japanese and non-Japanese brand owners still face several pain points, particularly in their after-sales service experience. As shown in Figure 3, Japanese car owners mostly complain about high service costs (49%), short warranty periods (44%), and expensive original spare parts (37%). Meanwhile, non-Japanese brand owners are more concerned with the distant location of service centers (35%) and the difficulty of obtaining genuine parts (25%). These issues highlight the unique challenges faced by each segment, which must be addressed through better service quality, expanded service networks, and more transparency in warranty and parts management. If not resolved, these pain points may lead to lower customer satisfaction and reduced loyalty in the long run. 

Strategies to Engage Indonesian Customers 

Considering the findings above ranging from shifting customer preferences and aftersales challenges to the importance of differentiation through end-to-end customer experience and loyalty programs, it is clear that non-Japanese brands must take a more structured and customer-relevant approach in Indonesia. Below are several strategic service recommendations for vehicle brands: 

1. Build Differentiation Through Service 

• Service is no longer just a support function, it has become a key differentiator in the automotive market. 
• Focus on fast, transparent, accessible, and integrated service throughout the pre- to after-sales journey. 
• Turn after-sales into a memorable experience, not just a technical process. 

2. Invest in More Personal and Integrated Loyalty Programs 

Develop a comprehensive loyalty program to build emotional connections and increase customer lifetime value, through stages such as: 

• Point collection + rewards (Level 1) 
• Tailored experiences + segmentation (Level 2) 
• Interconnected ecosystem with external partners (Level 3) 

3. Create End-to-End Customer Experience 

Implement initiatives across every customer touchpoint: 

• Pre-sales: online price simulation, AI-powered FAQs, WhatsApp live chat 
• During-sales: e-contract signing, real-time order tracking, digitally enhanced showroom experience 
• Post-sales: online service booking, personal service advisor, vehicle pick-up for service, transparent service costs and procedures