The Indonesian Automotive Industry Association (GAIKINDO) expresses optimism regarding the positive growth of investment trends in the automotive sector in 2024. According to a statement by GAIKINDO's Secretary-General, Kukuh Kumara, on January 10, 2024, Indonesia has the potential to emerge as a key player in the electric vehicle (EV) industry, positioning itself as a central hub due to the abundant availability of raw materials, particularly nickel. Kukuh emphasizes that Indonesia, with its significant nickel reserves, should lead in EV production, specifically in battery manufacturing. Comparing Indonesia with other ASEAN countries in the automotive industry, he highlights the country's advantage, citing its dominant domestic market share of 31%. The evolving EV ecosystem has transformed into a substantial and promising market domestically. The vast potential in 2024 necessitates Indonesia's continuous growth, fueled by the evolving ecosystem and the emerging battery production and assembly for EVs. Nickel reserves, crucial for EV industrialization, are expected to impact both upstream and downstream sectors positively.
Electric vehicle sales in Indonesia witnessed a remarkable surge of 322% from January to October 2023 compared to the same period in 2022, primarily driven by hybrid vehicles. According to GAIKINDO data, EV sales reached 51,831 units in the first ten months of 2023, marking a 322% YoY increase from 12,281 units. The possibility of similar growth extends to conventional motor vehicles, considering Indonesia's substantial population of 280 million people. Detailed sales analysis reveals Hyundai leading EV sales with models like Ioniq, Kona EV, and Genesis, totaling 6,844 units. Wuling's Air EV follows closely with 4,783 units, while BMW's electric models, such as iX Drive40, i440 Gran Coupe, and i7 xDrive Limousine, sold 801 units. Toyota's bz4k recorded 476 units, Lexus with UX 300e and RZ 450e totaled 209 units, and Mercedes-Benz's EQ Class contributed 169 units to the electric vehicle market. One influential factor stemming from the rise of electric vehicles is the exemption from odd-even policies in Jakarta for fully electric cars. This policy has driven consumer interest towards logic-driven purchases, favoring electric cars over conventional vehicles to avoid dual purchases and associated costs.
