Toyota crashes Indonesia’s used-car party with $120m bet

It’s an alliance everyone saw coming.

After decades of dominating Indonesia’s automotive industry, Toyota and Astra are joining forces for the country’s used-car market. The Japanese automaker shelled out US$120 million for a 40% stake in Astra Digital Mobil, giving it part ownership of used-car marketplaces OLX and OLXmobbi.

The deal comes as Indonesia’s economic struggles hit its new-car sales. It dropped 13.9% in 2024 compared to 2023, according to data from the Indonesian Automotive Industry Association (Gaikindo).

Overall, roughly 800,000 new cars were sold last year – less than half of the 1.8 million used vehicles sold within the same period.

These are the exact areas the likes of Carro, Carsome, and Moladin have spent years and millions of dollars on. They face entrenched incumbents with deeper pockets, broader distribution, and long-standing brand trust.

Now the question is this: Can these smaller players survive – and thrive – as the giants move in?

Astra Digital Mobil declined to comment for this story, while Toyota did not respond to Tech in Asia’s requests for a comment.

Big brands, bigger footprint

Yannes Martinus Pasaribu, an automotive expert from the Bandung Institute of Technology (ITB), points out that used vehicles offer a more flexible, lower-cost path to expansion. But it can also be be more profitable than selling new vehicles: while gross margins for new vehicles generally range from 2% to 5%, it can reach 5% to 15% for used cars.

Toyota has also ventured into the used-car trade overseas, operating an online store for used models in Japan. In the US and Singapore, it has dealerships selling certified used Toyotas.

Astra has done something similar with another brand that it distributes in Indonesia: BMW Astra Used Car, a dealership focused on certified pre-owned BMWs in Jakarta.

The appeal is clear. Consumers, especially those who aren’t savvy, can’t always assess a car’s true condition. Having a vehicle certified and guaranteed by the brand itself can provide peace of mind.

Scale isn’t everything

The real battle: profit