Sales of Indonesian electric vehicles are predicted to continue to increase in 2024. This condition is in contrast to the global electric vehicle market which is experiencing a decline.
It’s just that Indonesia needs to anticipate factors that could slow down sales of electric vehicles. One of them is the end of incentives provided by the government.
Automotive Observer and Electrical Power Engineering Researcher at the Bandung Institute of Technology (ITB) Agus Purwadi said that sales of electric vehicles in Indonesia are predicted to increase because new models continue to emerge. The presence of these new electric cars will stimulate the electric vehicle market in the country.
“For Indonesia, with the increasing number of alternative models that are more suitable, next year it is predicted that the electrified vehicle market will still grow and develop, especially for four-wheeled vehicles, the majority of which are hybrid types and two-wheeled ones for full EVs,” explained Agus.
However, he reminded that conditions could change if the electric vehicle incentives provided by the government ended. If that happens, people will tend to think twice about buying an electric vehicle.
This is the same as the condition of the global electric vehicle market which is currently experiencing a slowdown. Agus explained that the world electric vehicle market is driven by three main markets, namely China (more than 50 percent), Europe and America.
“Because China has started to reduce incentives, market demand is starting to decline, but in global terms, according to the IEA 2023 report, it is still growing. A similar phenomenon could occur in Indonesia, until incentives start to be reduced,” said Agus.
It is known that global demand for electric cars towards the end of 2023 will continue to decline. According to Fitch Ratings research, demand for electrification products in Europe and other large markets is slowing.
This is due to the still high price of electric vehicles and consumer concerns regarding mileage, charging and resale prices.
Fitch also said that the penetration level of electric vehicles in China is among the highest, namely around 35 percent of new car sales in the 3rd quarter of 2023 globally.
However, passenger electric vehicle sales growth fell to 28 percent in Q3-2023, from 108 percent in Q3-2022, according to the China Automobile Manufacturers Association. This decline is likely to slow further in the 4th quarter of 2023 and 2024.
Meanwhile in Indonesia, according to data from the Association of Indonesian Automotive Industries (Gaikindo), sales of battery-based electric cars reached 11,910 units during January – October 2023. This number has increased by more than 20 percent compared to last year.
