MG Not Yet Interested in Bringing Cheap Electric Cars to Indonesia
31 January 2026, 19:00 WIB
Chery believes that cars are one of the primary needs for Indonesian consumers, which will help boost the market in 2026.
KatadataOTO – PT Chery Sales Indonesia (CSI) becomes one of the Chinese manufacturers that bring a variety of eco-friendly vehicle products to Indonesia.
Amid many challenges, especially throughout 2025, Chery believes car sales can gradually increase in 2025.
“The market this year is certainly challenging, but we are very optimistic,” said Budi Darmawan, Vice Country Director of PT CSI during the Chery C5 CSH Media Test Drive event in Semarang a while ago.
He does not deny that the automotive market has declined for two consecutive years.
However, he assesses that today a car has become one of the main necessities for people in Indonesia.
“(Cars) have become a need that whether you like it or not you must have. We (still) are watching when the market timing will bounce back,” Budi emphasized.
Budi highlighted that the car ownership ratio in Indonesia is still relatively low. However, the arrival of various new products provides many varied choices for the country's citizens.
“Indeed it is currently contracting, but we are confident it will certainly grow,” Budi said.
Nevertheless, there are many key factors determining the growth of the domestic automotive market, including the global economic conditions.
Therefore, Chery emphasizes the importance of government incentives according to the current market needs.
“Of course we are confident the government has a clear roadmap towards that. So, again, we fully support whatever it is,” Budi said.
For information only, retail sales or distribution from dealers to consumers throughout 2025 amount to 833,702 units.
Several brands rely on government incentives for imported electric cars such as BYD, Xpeng, and Geely. This makes the price of imported Electric Vehicles (EV) sold with competitive pricing.
The highest retail sales were achieved at the end of the year, namely 93,833 units in December 2025.
Besides incentives, such rapid growth can be achieved thanks to numerous programs from each manufacturer, including year-end discounts or price cuts.
In 2026 the challenges will increase because the government is halting incentives for imported electric cars.
If subsidized brands cannot carry out local assembly, there is a chance that prices will surge sharply due to added import taxes.
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