Chery's Strategy to Dispel the Stigma of Expensive PHEVs Among Consumers

KatadataOTO – PHEV (Plug-in Hybrid Electric Vehicle) is a hybrid technology that allows a car to be filled with gasoline and charged like a battery-based electric car.

Compared to conventional hybrids, PHEVs have a larger capacity battery, allowing them to serve as a power source to replace the combustion engine.

In China, this technology is even said to be more popular than EVs (Electric Vehicles). It's more flexible because owners do not have to rely on infrastructure like public electric vehicle charging stations (SPKLU).

Charging the battery is arguably optional, as there is still a gasoline engine to support the journey.

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However, the price of PHEVs is indeed much more expensive. In Indonesia, models of this type of car are very limited and are offered from IDR 1 billion and up.

Examples include the Mazda CX-80 PHEV, and the compact SUV (Sport Utility Vehicle) Toyota RAV4 GR Sport PHEV.

Chery, as a Chinese brand that wants to compete in the hybrid segment, admits there is a challenge because the 'expensive price' characteristic is still attached to PHEVs.

Therefore, one strategy being implemented is the use of the name CSH (Chery Super Hybrid) for their latest lineup, the Chery Tiggo 8 PHEV.

Marketed under the name Tiggo 8 CSH, Chery has even confirmed that the model's price tag will be competitive and a new breakthrough. There is a high chance it will be sold for under IDR 1 billion.

“Indeed, especially here in Indonesia, we want to popularize the use of PHEVs. Actually, a PHEV is one level above a hybrid,” said Budi Darmawan, Sales Director of PT CSI in North Jakarta some time ago.

The CSH name is expected to be seen as something new and interesting for consumers and to no longer reinforce the stigma that PHEV prices are expensive and out of consumers' reach.

“So far, consumers only know about PHEVs. So, of course, we have our own branding, which we call Chery Super Hybrid,” said Budi.

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He revealed that many consumers feel that PHEVs are sold for twice the price of the gasoline engine version.

“When talking about PHEVs, (consumers say) why does a car that normally costs around IDR 500 million become over IDR 1 billion as a PHEV. We will try to make a breakthrough on this,” said Budi.

Although not yet revealed in detail, the Chery Tiggo 8 CSH is potentially coming soon. The Tiggo 8 CSH will be produced locally, so its price is guaranteed to be competitive.