Affordable Hybrid Cars Could Boost Sales in Indonesia

KatadataOTO – Interest in the four-wheeled vehicle electrification line in Indonesia is showing a positive trend, especially hybrid cars.

Based on data presented by the Association of Indonesia Automotive Industries (Gaikindo), wholesales (distribution from factory to dealer) of hybrid cars reached 6,258 units in July 2025.

Meanwhile, electric cars or Battery Electric Vehicles (BEV) were at 5,531 units, although they previously reached 6,302 units.

On the other hand, plug-in hybrid cars, or PHEVs, experienced a decline in July 2025 to 347 units. Previously, they had reached 1,237 units.

Photo : KatadataOTO

But this is understandable considering PHEVs are not yet popular in the country. This is because their operation still requires charging like an electric car.

However, the presence of competitively priced hybrid cars could be a solution. According to economists, Hybrid Electric Vehicles (HEVs) can offer cost efficiency and an affordable total cost of ownership.

“Pure ICE sales are weakening, while hybrid and Electric Vehicles (EVs) are gaining momentum,” said Josua Pardede, Chief Economist at Permata Bank to KatadataOTO, on Monday (11/08).

Meanwhile, sales of Low Cost Green Cars (LCGC), which were previously a mainstay, have plummeted.

Seeing this, Josua believes that affordable hybrid cars are one solution to help increase sales.

“Push for non-premium hybrid variants that save fuel, addressing the total cost of ownership,” he said.

Speaking of affordable hybrid cars, newcomers are now starting to enter and liven up the market with increasingly varied designs.

Photo : KatadataOTO

There is the Suzuki Fronx, priced at around Rp 270 million. This model uses Smart Hybrid Vehicle by Suzuki (SHVS) technology, as has been applied in the Ertiga and XL7.

Then there is the Daihatsu Rocky Hybrid at around Rp 290 million. From China, there is the Chery Tiggo Cross Hybrid priced at around Rp 300 million.

“With this mix, coupled with well-targeted government policies, I see room for improvement in car demand in the fourth quarter of 2025 and a more solid foundation for recovery in 2026,” Josua affirmed.