Indonesia: Considering measures for the introduction of electric cars, automakers seeking incentives

Production and export of MPVs expanded, Mitsubishi Xpander leaps ahead

2019/05/21

Summary

According to statistics of the Association of Indonesia Automotive Industries (GAIKINDO), production volumes in 2018 increased 10.4% to 1.344 million units and sales volumes increasing by 6.9% to 1.151 million units, both indicating favorable results compared to the previous year. The export volumes for Complete Build-Up (CBU) units in 2018 increased by 14.4% compared to the previous year, and the 25.6% increase in the January ~ March 2019 period indicates that exports continue to grow.

In the Indonesian market, the presence of Mitsubishi Motors is growing after the launch of operations at its Bekasi Plant in 2017. Its flagship MPV model “Xpander” has been responsible for the company’s growth in domestic sales and exports, and from 2019 it started OEM supply to Nissan Motors’ new model the “Livina” that was developed based on the Xpander. At Nissan’s Purwakarta Plant, the production of Nissan branded vehicles will be reduced, with the plant scheduled to start production of Xpander engines.

Chinese automakers such as Wuling and Dongfeng Sokon (DFSK) also started operations of their respective new plants in 2017. Wuling has already launched 4 models including MPVs and SUVs, and DFSK is launching small commercial vehicles and SUVs.

The Indonesian government has outlined a sales goal of 400,000 units for low-carbon emission vehicles (LCEV) and a 20% share of sales for electric vehicles by the year 2025. In March 2019, the government indicated that directives will be announced in the first half of 2019 to reduce the luxury tax (PPnBM) on LCEVs, with plans to implement the policies from the year 2021. Automakers are waiting for the government’s final decision and are exploring what steps to take such as development of target models and preparations for their operations in anticipation of the incentive provisions for electric vehicles.

Vehicle production and sales in Indonesia
(Source: Created by MarkLines based on GAIKINDO’s data)
Increased production of Xpander is ongoing at Mitsubishi Motor’s Bekasi Plant
(Source: Mitsubishi Motors)

 

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