Indonesia's Electric Vehicle Market Sees 153% Growth in 2024, Driven by Policy and Consumer Demand
Key Insights
Electric vehicle (EV) sales in Indonesia surged by 153% in 2024, reaching 43,188 units, driven by rising consumer interest and government incentives.
Experts highlight the market's robustness, with manufacturers improving battery capacity, mileage, and offering lifelong warranties to attract buyers.
Government policies, including tax incentives and charging infrastructure development, are key contributors to the EV market's growth.
The market is expected to expand further as consumer awareness grows and manufacturers introduce more affordable models.
Indonesia's electric vehicle (EV) market has recorded a remarkable 153% growth in sales for 2024, with 43,188 units sold, according to automotive expert Yannes Martinus Pasaribu from the Bandung Technology Institute (ITB). The surge is attributed to increasing consumer interest in EVs, supported by government policies and improvements in vehicle technology. Pasaribu noted that the market has yet to reach saturation, indicating strong potential for further expansion.
Manufacturers are capitalizing on this momentum by enhancing their offerings, including larger battery capacities, extended mileage, and lifelong warranties on critical components like batteries. These advancements, coupled with lower maintenance costs compared to internal combustion engine (ICE) vehicles, are making EVs increasingly attractive to consumers. "The choices of EV models have grown in variants and price points, bringing them closer to ICE counterparts," Pasaribu explained.
Government support has been instrumental in driving this growth. Policies such as tax incentives and the development of charging infrastructure (SPKLU) have created a favorable environment for EV adoption. Jongkie Sugiarto, Head of the Association of Indonesia Automotive Industry (Gaikindo), emphasized that while model variety is a factor, pricing remains the primary consideration for prospective buyers. "Electric cars still have their niche, depending on the price point," Sugiarto stated.
The market is poised for continued growth as consumer awareness increases and manufacturers refine their pricing strategies. With Indonesia targeting 15 million EVs on its roads by 2030, the sector is set to play a pivotal role in the country's transition to sustainable transportation.