CIMB Niaga Auto Finance Reports Strong Growth in New Car Loans Despite Used Car Decline

New Car Financing Shows Significant Growth

CIMB Niaga Auto Finance (CNAF) has reported a substantial 58% year-on-year increase in new car loan disbursements, reaching Rp4.09 trillion by December 2025. This growth contrasts with a 12% decline in used car financing to Rp5.28 trillion during the same period. The company's total portfolio stood at Rp10.31 trillion, with new car financing contributing 40% and used cars accounting for 51%.

Market Dynamics Driving Changes

According to Ristiawan Suherman, President Director of CNAF, the decline in used car financing is primarily due to increased competition from new Chinese vehicles entering the market with competitive pricing and quality. This has expanded consumer choices and impacted the used car segment. The automotive financing landscape is thus experiencing a significant shift in consumer preferences.

Strategic Response to Market Changes

In response to these market dynamics, CNAF is implementing a diversification strategy for 2026. The company plans to expand its financing products beyond traditional automotive loans, including gold financing, Hajj financing, and commercial sector financing. These new offerings are expected to contribute to the company's growth in the coming year.

Operational Focus Areas

To maintain its competitive edge, CNAF is focusing on digitalization of its processes. The company is working to simplify the loan application process through digital channels, enhancing customer experience. Additionally, CNAF is emphasizing risk mitigation by conducting thorough analyses of potential customers to minimize the risk of bad loans.

Industry Context and Outlook

The overall automotive financing industry is witnessing contrasting trends. While CNAF's used car financing declined, industry data showed a 0.42% growth in used car financing by the multifinance industry as of November 2025. Conversely, new car financing by the industry contracted by 4.65% during the same period. The Financial Services Authority (OJK) expects used car financing to be relatively more resilient in 2026, while new car financing is anticipated to recover with strategic adjustments and product innovations in the multifinance sector.