Suboptimal EV Transition Negatively Impacts Car Sales

KatadataOTO – The government's commitment to electrification is currently facing various challenges. Especially amidst weakening purchasing power and the issue of import tariffs from the President of the United States.

The transition to electric vehicles is considered suboptimal and creates opportunities for new problems. 

The Deputy Chairman of Commission XI of the DPR RI revealed that the public had delayed purchasing conventional vehicles in the hope that the price of electric cars would become cheaper due to incentives.

However, in reality, the prices of most electric cars are still beyond the reach of consumers. Coupled with the consumer trend of delaying conventional car purchases, car sales figures have also been affected.

Photo : Special

“The state must be present as a guide for the transition, not just a provider of temporary incentives,” said M. Hanif Dhakiri, Deputy Chairman of Commission XI of the DPR RI, in his statement some time ago.

In response, an automotive observer believes that various factors are at play behind the suboptimal transition to electrification in Indonesia.

“Actually, the existing policies have been quite helpful. But the volume of EVs (Electric Vehicles) still cannot replace the lost volume of conventional vehicles,” said Bebin Djuana, an automotive observer, when contacted by KatadataOTO on Thursday (24/04).

He highlighted that purchasing power is the main problem behind the weakening of the automotive industry and the suboptimal EV transition.