Automotive Sector - Another inline monthly sales volume in Feb26

KBVS Update
Thursday, 26 March 2026

Automotive – Another inline monthly sales volume in Feb26
(Maintain Neutral)

* Feb26 car sales growth came strong at 12.2% yoy (22.1% mom) and meaningfully impacted the 2M26 period (9.8% yoy).

* In all, both the period sales volumes arrive in line with our ‘Feb26F and ‘2M26F. We anticipated that ‘1Q26F 4W sales volume will also come inline due to the same momentum impact from the month of Eid al-Fitri that came in the same period as last year.

* On the 2W side, there’s not much to say due to continuing sector growth concerns, and we think volume growth will likely stagnate.

* Overall sector key growth remains on softer auto loan yield, which will be triggered by more materialized benchmark rate cut transmissions. We kept our ‘26F auto sales volume unchanged to accommodate a) the weakening purchasing power, b) unchanged spending confidence, c) prolonged uncertainty, d) boiling Middle East tension.

* Maintain Neutral stance on the sector and BUY ASII with SOTP TP of IDR 7,050 (8.9x ‘26F P/E).

Regards,
Akhmad Nurcahyadi - KBVS Research