Flooring Guide by Cinvex – , JAKARTA — Automotive-related stocks, including those of PT Astra International Tbk. (ASII) and PT Indomobil Sukses Internasional Tbk. (IMAS), have demonstrated remarkable strength in the green zone throughout 2025. This impressive performance prompts a crucial question: What lies ahead for these key players in the Indonesian automotive sector in the year 2026?
Data from the Indonesia Stock Exchange (IDX) reveals a shining performance for several automotive-affiliated issuers. For instance, PT Astra International Tbk. (ASII) shares have surged an impressive 36.73% year-to-date (YTD) to reach Rp6,700 per share as of trading today, Friday (5/12/2025).
Similarly, PT Astra Otoparts Tbk. (AUTO) has seen its share price climb 20% YTD to Rp2,760 per share, while PT Dharma Polimetal Tbk. (DRMA) recorded a 15.22% YTD increase, reaching Rp1,060. Most notably, PT Indomobil Sukses Internasional Tbk. (IMAS) shares have skyrocketed 50.28% YTD, trading at Rp1,360 per share.
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This robust stock market performance comes despite a sluggish domestic automotive sales landscape this year. According to data from the Association of Indonesian Automotive Industries (Gaikindo), the volume of car wholesales from January to October 2025 contracted by 10.6% year-on-year (YoY), dropping from 711,064 units in the same 10-month period of 2024 to 635,844 units this year.
Retail car sales also mirrored this decline, falling 9.6% YoY to 660,659 units, compared to 731,113 units recorded in the first ten months of 2024.
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Miftahul Khaer, an Equity Research analyst at Kiwoom Sekuritas, notes that the significant strengthening of automotive stocks this year is quite impressive, especially given the national car sales remain weak. He suggests this buoyancy is largely driven by non-fundamental sentiments.
“Furthermore, there is an expectation of future growth,” Miftah told Bisnis on Friday (5/12/2025).
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Large-scale exhibitions, such as GIIAS 2025, have also fueled optimism for a demand rebound. There are also expectations that the automotive sector will receive government incentives to boost the industry heading into 2026.
Aligned with this, Miftah anticipates that the outlook for the automotive sector in 2026, while still complex, holds potential for upside. “Provided several catalysts, such as interest rate cuts or easier credit access, fiscal policy stimuli, and a recovery in consumer purchasing power, can materialize as key drivers in the coming period,” Miftah elaborated.
Muhamad Rudy Setiawan, a Research Analyst at MNC Sekuritas, observed that four-wheeled vehicle sales have indeed tended to decline this year, while the two-wheeled vehicle market has remained relatively stable, supported by strong exports.
“We see a recovery opportunity in 2026, driven by stronger structural growth and Indonesia’s still-low 4W penetration rate,” Rudy wrote in his research report.
MNC Sekuritas maintains an “overweight” position on the automotive sector, forecasting a recovery for the four-wheeled segment throughout 2026, coupled with resilient margins in the two-wheeled sector.
Specifically, MNC Sekuritas recommends a buy for ASII, setting a target price of Rp7,000 per share. “ASII remains our top pick, supported by its dominant position in both the four-wheeled and two-wheeled sectors, a comprehensive product lineup, and a robust financing division,” Rudy explained.
MNC Sekuritas also recommends AUTO, with a target price of Rp3,200 per share, citing its solid revenue, strong cash flow resilience, and high dividend yield.
Christofer Kojongian, an analyst at Sucor Sekuritas, also believes the automotive sector began showing signs of recovery towards the end of 2025, driven by a more accommodating benchmark interest rate policy.
Sucor Sekuritas maintains a buy recommendation for DRMA, with a target price set at Rp1,500 per share. Sucor Sekuritas commends DRMA’s agility in adapting to the evolving automotive industry, particularly its expanding presence in EV-related components. “Moreover, a solid balance sheet with a net cash position provides room for future acquisitions to accelerate further growth,” Christofer highlighted in his research.
According to Bloomberg data, the latest analyst consensus for ASII indicates that 25 securities firms have issued a buy recommendation, while nine have a hold recommendation. The 12-month target price for ASII shares stands at Rp6,906 per share.
For DRMA, the recent analyst consensus shows 10 securities firms recommending buy, with one suggesting a hold. The 12-month target price for DRMA shares is Rp1,313 per share.
Furthermore, the latest analyst consensus reveals that 11 securities firms have issued buy recommendations for AUTO, with a 12-month target price of Rp3,123 per share.
Disclaimer: This news article is not intended as an invitation to buy or sell stocks. Investment decisions are solely at the discretion of the reader. Bisnis.com is not responsible for any losses or gains arising from the reader’s investment decisions.
Summary
Automotive-related stocks, including ASII, IMAS, AUTO, and DRMA, have shown strong performance throughout 2025, despite a notable contraction in domestic car sales during the first ten months. Analysts attribute this market strength to non-fundamental sentiments and expectations for future growth. Optimism for 2026 is further fueled by large-scale exhibitions and anticipated government incentives.
Analysts project a potential recovery for the automotive sector in 2026, contingent on catalysts such as interest rate cuts, easier credit access, and improved consumer purchasing power. MNC Sekuritas recommends a “buy” for ASII and AUTO, citing their market dominance and strong financials. Sucor Sekuritas also advises a “buy” for DRMA due to its adaptability and expansion into EV components.