Chinese carmakers dominate EV market in Indonesia

Summary

Indonesia is targeting 2 million electric cars and 13 million electric motorcycles on its roads by 2030, with a focus on leveraging its large nickel resources to support the EV industry. Chinese car makers, especially brands like Wuling, are leading the market, and sales of electric cars have surged by 177% from January to August 2024. The government is actively promoting the EV sector with tax incentives, while Chinese investment continues to grow, bringing jobs and economic benefits. Key players like BYD plan to start local production in 2026, further bolstering the EV ecosystem.

Takeaways

• 😀 Indonesia aims to have 2 million electric cars and 13 million electric motorcycles on the roads by 2030.
• 😀 Indonesia is focusing on developing its EV ecosystem, leveraging its large nickel resources to support the industry.
• 😀 Chinese car makers dominate Indonesia's EV market, with Wuling being the bestselling brand.
• 😀 Electric car sales in Indonesia surged by 177% year-on-year, contributing over 4% to national car sales.
• 😀 Wuling inaugurated its EV factory in West Java in 2017, producing 12 electric vehicles per day.
• 😀 Wuling's EVs undergo rigorous tests before being deemed suitable for the market, with plans for further expansion.
• 😀 Indonesia offers incentives for EV adoption, including the removal of luxury tax and the waiver of import taxes until 2025.
• 😀 To qualify for tax benefits, EVs must incorporate at least 40% locally made components.
• 😀 Chinese EV manufacturer BYD will start factory operations in Indonesia by January 2026, investing $1.3 billion.
• 😀 Indonesia has set a target of producing 600,000 EV units by 2030 as part of its long-term EV strategy.
• 😀 China has invested $3.9 billion in Indonesia’s EV sector in the first half of 2024 and pledged more investments after a bilateral meeting.

Q & A

What is Indonesia's target for electric vehicle (EV) adoption by 2030?

Indonesia aims to have 2 million electric cars and 13 million electric motorcycles on the roads by 2030.

How does Indonesia plan to support the growth of its EV ecosystem?

Indonesia plans to leverage its large nickel resources to support the development of the EV industry and further develop its EV ecosystem.

Which country's car makers are currently leading Indonesia's EV market?

Chinese car makers are the bestselling brands in Indonesia's EV market, surpassing other Asian competitors.

What significant increase in electric car sales was observed in Indonesia from January to August 2024?

Sales of electric cars in Indonesia surged by 177% year-on-year from January to August 2024.

How much of the total national car sales do electric cars contribute in Indonesia?

Electric cars contribute over 4% to the total national car sales in Indonesia.

What is the capacity of the Wuling EV factory in West Java?

The Wuling EV factory in West Java can produce 12 electric vehicles per day.

What are the key incentives provided by the Indonesian government for EV buyers in 2024?

Key incentives for EV buyers in 2024 include the removal of the luxury tax on EVs, a waiver of import tax until 2025, and a reduction in value-added tax on the sale of EVs, provided the vehicle incorporates 40% locally made components.

What is the expected contribution of BYD’s investment in Indonesia’s EV sector?

BYD is expected to invest $1.3 billion to build an EV plant in Indonesia, contributing to the industry’s growth, the economy, and job creation.

What production target has the Indonesian government set for EVs by 2030?

The Indonesian government has set a target to produce 600,000 EV units by 2030.

What role has China played in Indonesia's EV industry development?

China has invested $3.9 billion in Indonesia's EV industry during the first half of 2024 and is Indonesia's second-largest source of foreign direct investment. China also pledged to increase investment after bilateral discussions with Indonesia's top diplomats.