Chinese carmakers lead Indonesian EV market

author: FutureCar Staff    

Electric vehicle (EV) sales in Indonesia are expected to experience rapid growth in the coming years. At the recent Gaikindo Indonesia International Auto Show, Chinese carmakers Neta Auto and Great Wall Motor showcased their sleek electric car models, aiming to tap into the increasing demand for eco-friendly vehicles in the country. The Indonesian government is actively promoting EV production and consumption by offering subsidies and incentives, as well as positioning the country as a hub for EV batteries and cars.

Neta Auto, which presented three models at the auto show, plans to establish an EV assembly line in Indonesia next year. Similarly, Wuling and Hyundai Motor Co. already have EV production facilities in the country. However, Japanese automakers like Toyota, Honda, Daihatsu, Mitsubishi, and Suzuki, which dominate the Indonesian car market, have been slower to introduce electric cars due to infrastructure limitations and lack of incentives.

Currently, EVs account for a small fraction of total automobile sales in Indonesia, with only 10,327 electric battery-powered cars sold in 2022. To boost the adoption of EVs, the government has implemented a subsidy program that covers the sales of electric motorcycles and cars, as well as the conversion of combustion-engine motorcycles to electric propulsion systems. However, challenges such as insufficient charging stations, high costs, inconsistent policies, and electricity supply reliability in rural areas need to be addressed.

In addition to Chinese carmakers, other international brands like Citroen and Mercedes-Benz showcased their electric vehicles at the auto show. The Indonesian government has also been actively pursuing American manufacturer Tesla to invest in car and battery manufacturing in the country. Chinese carmakers, such as Wuling, Chery, and DFSK Motor, have already made significant inroads in the Indonesian market, with Wuling's AirEV accounting for 80% of Indonesia's four-wheel EV sales in 2022.

While Chinese electric cars attracted interest at the auto show, some concerns were raised about their quality and reliability. Consumers like Arsita Kamila expressed doubts about the longevity of the battery, which is the most expensive component of an electric car. Nevertheless, with early investments and market presence, Chinese carmakers may have a head start in Indonesia's growing EV market.

FutureCar Staff