Imported Electric Vehicles Are Making Local Industry Bleed.

Then, new car sales from dealers to consumers (retail) were only 889,680 units in 2024. This number dropped by 10.9 percent from 998,059 units in 2023.

This condition is exacerbated by the entry of imported electric cars that have a low Domestic Component Level (TKDN).

The impact is that the domestic component industry is starting to cry out. The threat of layoffs (PHK) is imminent.

“In 2024, there are more and more electric vehicles, but this is putting pressure on vehicles that are already produced domestically,” said Kukuh Kumara, General Secretary of Gaikindo.

Photo : KatadataOTO

It should be remembered that many manufacturers producing four-wheeled vehicles in the country rely on component supplies from MSMEs. So if sales continue to plummet, the local industry will suffer even more.

Moreover, Kukuh explained that locally assembled cars have a TKDN of around 80 to 90 percent.

Thus, the influx of CBU EVs is putting significant pressure on business actors or the domestic automotive component industry.

“The impact is on the local content which plays a large role in our motor vehicle industry. Because there are tier one, two, and so on,” Kukuh emphasized.

He also hopes the government will intervene to improve the existing conditions. And also evaluate the imported electric car incentives that have been implemented.