Conditions for Electric Car Sales to Grow Without Incentives

KatadataOTO – Sales of electric cars in Indonesia are supported by the government, in the form of a 10 percent Government-Borne Value Added Tax (PPN DTP) incentive.

Looking at 2024, the market share of electric cars against total national wholesales (distribution from factory to dealer) is 4.95 percent.

This figure increased drastically from the 2023 achievement of 17,051 units to 43,188 units in 2024. Electric car incentives are said to play an important role.

However, it can be said that car sales for electric vehicles are not yet as high as expected. Hybrid cars are actually gaining popularity, coupled with the presence of Chinese products bringing in Plug-in Hybrid Electric Vehicles (PHEVs) as an alternative.

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Therefore, the existence of electric car incentives is still considered important and needs to be implemented for the long term.

Analysts believe there is a condition that must be met for Electric Vehicles (EVs) to sell optimally, which is that electric car sales must be able to break through 10 percent of the total market.

“Once its sales reach 10 percent of the market total, it will naturally grow with or without supporting incentives,” said Yannes Martinus Pasaribu, an academic from the Bandung Institute of Technology (ITB) and an automotive analyst in Tangerang some time ago.

Because it takes time for electric car prices to stabilize and for the options to match the needs of the community, who are the target consumers.

Other government policies can also support the growth of electric car use and purchases. In big cities like Jakarta, an example is the odd-even rule.

It should be noted that electric cars are one of the types of vehicles exempt from the odd-even rule and can still travel on various roads when the regulation is in effect.

According to him, people in big cities can also start considering buying an electric car because it offers various conveniences.

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“For five years of operational costs, so to speak, we still come out ahead,” said Yannes.

For comparison, hybrid cars currently still dominate the sales of environmentally friendly vehicles in Indonesia.

In 2024, its market share successfully broke 6.9 percent with wholesales figures of 59,903 units, an increase from the 2023 achievement of 54,179 units.