Chinese Brands Begin to Enter Hybrid Car Market, Japanese Brands Must Prepare.

KatadataOTO – Japanese automotive manufacturers in Indonesia are presenting more hybrid cars to consumers, considering the easier infrastructure and competitive prices.

Meanwhile, the majority of Chinese brands are bringing in electric cars with a price range from Rp 180 million to over Rp 500 million. However, recently, a number of Chinese manufacturers have started to enter the hybrid car market.

This will be a new challenge for Japanese brands in the country. Because the prices of vehicles from Chinese manufacturers are likely to be below similar models in their class.

Observing this phenomenon, automotive analysts believe that Japanese brands must start being wary of the presence of many new competitors.

Photo : CarNewsChina

“For example, by increasing the production of simple parts in Indonesia and accelerating design innovation for HEV (Hybrid Electric Vehicle), EV (Electric Vehicle), or ICE (Internal Combustion Engine) vehicles that use cheap biofuels, according to the specific needs of new markets in Indonesia,” said Yannes Martinus Pasaribu, an automotive analyst and academic from ITB (Bandung Institute of Technology) to KatadataOTO recently.

Optimizing local production or increasing the Local Content Level (TKDN) can be said to help manufacturers lower the price of their hybrid cars in Indonesia.

Considering that the public's purchasing power is still relatively limited, it is challenging to compete with Chinese products.

“Strategically, Toyota (and other Japanese brands) can lobby for exclusive incentives from the government for local hybrid production,” Yannes affirmed.

Then, intensively conduct outreach and education to consumers in Indonesia. The hope is that customers will remain loyal and not switch amidst the onslaught of Chinese products.

Photo : KatadataOTO

For your information, one of the Chinese manufacturers bringing a hybrid car is Jaecoo with the J7 SHS (Super Hybrid System). The PHEV model was launched at IIMS (Indonesia International Motor Show) 2025, offered at an estimated price of around Rp 599 million.

In comparison, PHEVs made by Japanese brands are still sold for over Rp 1 billion. Take the Toyota RAV4 GR Sport and Mazda CX-80 PHEV as examples.

PHEVs are an attractive option because they can be filled with gasoline and charged like an electric car. Thus, fuel consumption is said to be more efficient thanks to the assistance of the battery and electric motor.