Astra Boston Consulting Group Matrix

Astra's consumer finance segment shines as a Star in the BCG Matrix, demonstrating robust performance. In 2024, this division achieved a 6% rise in net income, fueled by strong expansion in new vehicle financing and a growing loan book. This upward trend continued into the first quarter of 2025, with net income increasing by 3%, attributed to larger loan portfolios and better credit quality.

The Indonesian economy's expansion is creating significant demand for financing, positioning Astra's consumer finance unit in a high-growth market. Astra commands a substantial market share within this sector, capitalizing on these favorable economic conditions.

Stars in the BCG matrix represent business units with high market share in high-growth industries. They require significant investment to maintain their leadership position and capitalize on future growth opportunities. Astra Honda Motor, Astra's consumer finance segment, and its property division all exhibit characteristics of Stars.

The Heavy Equipment & Mining segment, despite a 5% drop in net income to IDR 134.43 trillion in 2024, continues to be a bedrock of revenue. This resilience is anchored in its position as a market leader in heavy equipment distribution, a critical component for infrastructure and resource extraction.

While lower coal prices impacted profitability this year, the segment's inherent strength is evident in the robust performance of its mining contracting and gold sales divisions. These areas saw significant surges, effectively cushioning the overall financial impact and highlighting the diversified cash-generating capabilities within this established, albeit cyclical, industry.

Cash Cows represent business units with a high market share in low-growth markets. These units generate more cash than they consume, providing vital funding for other parts of the organization. Astra's automotive division, despite facing market contraction, maintained a strong 54% market share in Q1 2025, generating IDR 133.05 trillion in revenue in 2024. Similarly, Astra Life, operating in the mature life insurance sector, provides consistent premium income, reinforcing its role as a stable cash generator for the group.

United Tractors' coal mining operations, a component of its broader Heavy Equipment, Mining, Construction and Energy segment, experienced a downturn in profitability during 2024 and the first quarter of 2025. This decline was primarily driven by a fall in global coal prices, impacting the segment's net income.

Despite being situated within a strong overall business division, the direct coal mining activities are inherently susceptible to the unpredictable nature of commodity markets. Furthermore, the global trend towards decarbonization and a reduced reliance on fossil fuels presents a significant headwind, positioning this sub-segment in a market characterized by low growth prospects and potentially diminishing returns.

Dogs in the BCG Matrix represent products or business units that operate in low-growth markets and possess low relative market share. These entities typically generate low profits or even losses, consuming more resources than they contribute. Identifying and managing Dogs is crucial for resource allocation and strategic focus.

For Astra, the Peugeot car sales in 2024, with only 27 units sold, clearly position it as a Dog. Similarly, certain niche IT hardware segments and specialized logistics contracts within Astra's portfolio, characterized by low growth and minimal market share, also fall into this category. These areas demand careful evaluation for potential divestment or significant strategic redirection.

The key indicators for a Dog are low market share and low market growth. For example, a product with less than 5% market share in a market growing at less than 4% annually would typically be classified as a Dog. These units often require continued investment to maintain their position but offer little prospect of significant returns.

Astra's management must critically assess these Dog segments. The objective is to either revitalize them through substantial investment and innovation or to divest them to free up capital and resources for more promising opportunities, such as Cash Cows or Stars within the portfolio. The 2024 and early 2025 data for segments like Peugeot sales and certain logistics contracts strongly suggest this strategic consideration.

Astra's pure Battery Electric Vehicle (BEV) segment in Indonesia currently sits in the Question Marks category of the BCG matrix. While the Indonesian EV market is booming, with projections indicating a significant compound annual growth rate (CAGR) in BEV sales, Astra's current focus remains predominantly on hybrid vehicles. This strategic emphasis means their pure EV offerings, such as the Lexus UX300e and the Peugeot e-2008 (distributed by Astra), have a relatively small market share. In 2023, the Indonesian BEV market saw substantial growth, with sales reaching over 110,000 units, a significant jump from previous years, yet Astra's penetration in this specific segment is still minimal.

Astra's new electric motorcycle models, ICON-e and CUV-e, launched in late 2024, are positioned as Question Marks within the BCG Matrix. While the electric two-wheeler market is experiencing rapid expansion, these Astra models are currently struggling to gain significant traction, holding minimal market share and facing stiff competition. For instance, by the end of 2024, the average range for new electric motorcycles on the market was approaching 150 miles, while Astra's offerings reported ranges closer to 70 miles.

The strategic challenge for Astra is clear: these electric motorcycles represent a high-growth opportunity, but their current performance and market standing necessitate substantial strategic intervention. Without significant improvements or a shift in market dynamics, they risk remaining underdeveloped assets, requiring heavy investment to transition from Question Marks to Stars.

Astra's investments in digital platforms like Sayurbox and Paxel also fall into the Question Mark category. These ventures operate in high-growth digital sectors but likely possess low relative market share, requiring substantial capital expenditure for scaling and user acquisition. In 2024, the digital economy continued its rapid expansion, making these investments promising yet demanding significant ongoing financial commitment.