Car Prices in Indonesia Under Pressure Following the Arrival of 100-Million Rupiah EVs

KatadataOTO – The conventional car market in Indonesia continues to be under pressure. Especially after the influx of cheap Electric Vehicles (EVs).

Currently in the country, manufacturers are competing to sell electric cars in the Rp 100 million range.

This situation has had a wide-ranging impact on the automotive industry, especially on gasoline-powered four-wheeled vehicles.

“There is a shift from gasoline cars to electric cars,” said Airlangga Hartarto, Coordinating Minister for Economic Affairs, at the opening of the Kadin National Leadership Meeting, quoted from a Kadin Indonesia YouTube video on Thursday (04/11).

Photo: KatadataOTO

Airlangga mentioned that at an exhibition held in the Bumi Serpong Damai (BSD) area, many four-wheeled vehicles were priced around Rp 300 million.

However, he did not specify in detail the models he was referring to at the exhibition.

“There are even cars priced from Rp 175 million to Rp 190 million. This means that with the presence of electric vehicles, car prices are being pushed down,” Airlangga continued.

The minister serving under President Prabowo Subianto revealed that the high public interest in cheap EVs is starting to change the competition pattern in the national automotive market.

It appears that conventional car manufacturers are being more cautious in setting the prices for their products. They even tend to hold back on pricing to remain competitive.

Given that the electric car price war in the country is becoming increasingly fierce. This is pushing them to adapt.

“This has never happened before. With these indicators, we see that all future risks are already priced in, whether in the rupiah, interest rates, or various other factors,” Airlangga affirmed.

Electric Car Sales Skyrocket

On the other hand, Airlangga did not deny that many people now rely on EVs for mobility.

This condition is driving national electric car sales in 2025 to grow quite high, up to 18.27 percent.

Meanwhile, sales of gasoline-powered four-wheeled vehicles are relatively stagnant. Therefore, manufacturers must be careful in determining their strategy.

Photo: Changan

Especially in setting prices for new products, so that people are willing to buy the cars being marketed.

If this condition is allowed to continue, it is not impossible that the competition among manufacturers will become increasingly unhealthy.

It also threatens the sustainability of their business in the country. The worst-case scenario could happen at any time.