Jakarta. Astra Otoparts, the automotive parts maker under the conglomerate Astra, is embracing diversification initiatives to boost growth. 

Astra Otoparts --also known by its ticker code AUTO-- mainly focuses on producing and distributing parts for both two-wheelers and four-wheelers. The company, however, is not only eyeing opportunities in the automotive industry. 

After the Covid-19 pandemic hit the country, Astra decided to expand its business to the healthcare industry by producing healthcare equipment. Indonesia heavily relies on imported medical equipment, and Astra hopes that its diversification can lessen Indonesia’s reliance on imports. The expansion was also the company’s strategy to drive business growth amid a decline in the Covid-hit automotive industry. 

AUTO so far has produced electrocardiography and blood pressure monitor lite, among others. Its subsidiary Astra Komponen Indonesia (ASKI) is in charge of this health equipment business line. 

“As of June 2024, we have produced 24 healthcare equipment,” Astra Otoparts director Sophie Handili told reporters on Wednesday. 

As many as five of those products were launched this year. 

Astra Otoparts also manufactures non-automotive parts for heavy equipment, industrial products, and railways as a means to diversify its business portfolio. 

AUTO posted Rp 1.01 trillion (around $65.9 million) worth of net profit in the first half of 2024, up by 26.5 percent versus the same period last year. AUTO attributed the growth to the trading business and exports from the manufacturing business. AUTO’s wholesales, particularly for the two-wheeler market, had also been on the rise in the past two months of the third quarter.

“We hope we can maintain this growth so AUTO can book a better performance in the second half,” Sophie said. 

AUTO’s revenue and net profit had been growing in 2015-2023, despite a decline in the pandemic-struck 2020.

“We will always try to overcome the challenges of a stagnant automotive market. Even after the pandemic, our revenue rose 20 percent and net profit was 2.5 times higher compared to 2019 levels even though the automotive market has yet to return to pre-pandemic levels,” Sophie said. 

In the trading business, AUTO plans to have more outlets to bolster its network.