JAKARTA – PT Astra International Tbk (ASII) is expected to face multiple challenges in 2025, affecting its automotive and financial services businesses.

In the automotive sector, ASII is predicted to confront weakened purchasing power, according to BRI Danareksa Sekuritas analysts, Richard Jerry and Sabela Nur Amalina. In their research, they noted that this decline in purchasing power will lead to increased competition in the automotive business in 2025.

The two analysts also reduced their expectations for domestic car sales to 900,000 units, growing by 4% year-on-year (yoy) in 2025. Previously, market expectations for car sales in 2025 were as high as 5% growth.

“We expect ASII’s market share to remain around 56%,” they wrote.

With lower car sales expectations, ASII's financing business is projected to slow down in 2025. However, the company’s heavy equipment and agribusiness segments are likely to grow significantly, supported by rising commodity prices.

“We have cut ASII's net profit expectations to -1% for 2025, before projecting 8% growth in 2026,” they stated.

Despite this, the BRI Danareksa analysts still maintain a BUY rating for ASII stock, but with a lower target price of IDR 5,800 per share.

As of 10.12 AM WIB on Tuesday (4/3), ASII shares were down 0.21% to IDR 4,670 per share. Since the beginning of this year, its stock has fallen by 5.45% or 270 points. (KR/ZH)