Reasons Many Electric Car Consumers Buy in Cash

KatadataOTO – Official dealer Hyundai Gowa reveals that currently, most buyers of electric cars or EVs (Electric Vehicles) make cash purchases. 

It should be noted that Hyundai offers several electric car models to consumers. Starting from the Ioniq 5, Ioniq 6, Kona EV, and Kona EV N Line with prices starting from Rp 400 million.

“For higher-end electric cars, more people buy in cash. Because the segment is indeed middle-up,” said Ferry, Chief Operating Officer of Hyundai Gowa, when met in Cikarang, West Java, some time ago.

According to him, the rough percentage is 60 percent cash while the other 40 percent is credit or installments.

Photo : Hyundai

He revealed that most electric car buyers are not first-time car buyers. Rather, they are buying their second, third, or a replacement for a model they already own.

“People who are new to owning a car and immediately buy an EV, that happens, but it's very rare. So, on average, the reason they pay cash is because they already own their first car,” Ferry emphasized.

Generally, these consumers use their vehicles for mobility in specific areas only, such as urban areas. For long-distance travel, they still tend to use gasoline-powered cars.

“If they go out of town, this gentleman (the consumer) said he wanted to travel around Java. He would definitely leave his EV at home, because it's hard to find a public electric vehicle charging station (SPKLU),” he explained.

Speaking overall, he emphasized that the automotive market is currently still shaped by consumers who purchase vehicles on credit.

For your information, credit purchases are still a mainstay for many consumers in the country. In January 2025, Bank Indonesia lowered its benchmark interest rate, which is claimed to have a positive impact on new car financing.

Photo : Special

On the same occasion, Ferry explained that there is an opportunity for their sales in the country to increase due to easier credit terms.

The decrease in the BI Rate is also seen as helpful in overcoming the weakening of public purchasing power due to several factors, such as the increase in VAT (value-added tax) from 11 percent to 12 percent.

“In our data, the average (tenor) is three to five years. The one to three-year range is relatively small,” he asserted.