BRI Finance Navigates Challenges in New Car Financing Market

Addressing Market Weakness

BRI Finance is facing significant challenges in the new car financing segment amid a weakening market. Corporate Secretary Aditia Fakhri Ramadhani identified two primary obstacles: declining consumer demand due to increased caution and vehicle price adjustments impacting purchase decisions. These factors have intensified competition in the financing market, necessitating more precise risk management strategies.

Strategic Adjustments

To address these challenges, BRI Finance is implementing several strategic adjustments. The company is adopting more competitive pricing strategies tailored to risk profiles, while also offering flexible tenor options and down payment adjustments. These measures aim to maintain affordability for customers while preserving portfolio quality. The approach is designed to keep financing disbursement healthy and sustainable in a challenging market environment.

Market Trends and Projections

The multifinance industry recorded a 4.65% year-on-year contraction in new car financing to Rp142.59 trillion, according to Otoritas Jasa Keuangan (OJK) data. BRI Finance attributes this decline to vehicle price adjustments, shifting consumer preferences toward energy-efficient vehicles, and economic uncertainty making consumers more cautious. In response, the company is projecting stronger growth in segments focused on light commercial vehicles, productive segments, and affordable mobility needs during 2026.

Changing Consumer Preferences

BRI Finance has observed a significant shift in consumer preferences affecting their financing performance. Current demand is trending toward vehicles with lower total ownership costs, such as LCGC (Low Cost Green Car) models, and functional vehicles like SUVs for family or daily needs. While interest in electric vehicles is growing, it has not yet become dominant in the market. This shift is influencing the composition of both new and used car financing in the market.

Portfolio Composition

The company's new car financing contributes 40.05% to total portfolio, while used car financing makes up 9.87%. This distribution reflects BRI Finance's position in the automotive financing market and highlights the relative importance of new vehicle financing in their business operations.