The Electric Vehicle Trend in Indonesia Continues to Grow Since 2020
16 January 2026, 17:00 WIB
The United States government is discontinuing electric vehicle incentives as of September 30, 2025, and manufacturers are beginning to struggle.
KatadataOTO – The current electrification era is enlivened by many products from China. As a result, many other manufacturers have to work harder to catch up with these technological developments.
Unfortunately, not all brands can survive. Many producers seem to have difficulty maintaining sales, especially after incentives in the United States were discontinued.
It should be noted that previously there was a government subsidy worth 7,500 USD or about Rp 124.2 million in rupiah.
For comparison, in Indonesia the figure is in the range of Rp 70 million for models that meet the requirements.
In Uncle Sam's country, the price of electric cars is said to have soared after the government stopped incentives on September 30, 2025.
As a result, some producers decided to provide 'independent incentives' in the form of discounts or lower variants at affordable prices.
The South Korean brand, Hyundai, is providing a subsidy of 11,000 USD or the equivalent of Rp 182.2 million for the Ioniq 5.
Then Tesla introduced new types of the Model 3 and Model Y, but their prices were lowered.
However, observers believe that the strategies employed by these manufacturers may not necessarily succeed, even though they are varied and unique.
“Manufacturers just want to maintain sustainable sales figures and this is part of their efforts,” said Ivan Dury, Director of Insights at Edmunds, as quoted by Carscoops on Friday (10/10).
On the other hand, some brands have simultaneously stopped selling their electric cars.
Among them is the Acura ZDX SUV. Then Stellantis canceled its sales plan for the RAM 1500 REV.
Coupled with the onslaught of increasingly popular electric cars from China, other brands must think hard if they want to continue introducing their electrification lineup to the market.
This is because Chinese brands have the advantage of abundant features combined with competitive prices, often far below rivals in the same segment.
For example, in Indonesia, electric cars like BYD receive import incentives from the government.
This makes the price of BYD electric cars claimed to be affordable, starting from Rp 195 million, threatening the existence of other brands, including fellow Chinese brands.
However, that price has the potential to change next year when the incentives for imported electric cars are stopped.
If it does not meet the Local Component Level (TKDN) criteria, the price of BYD electric cars could increase sharply.
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