The 2026 electric car trend is believed to falter without incentive certainty.

KatadataOTO – The government has yet to provide certainty regarding automotive incentives that were previously given to models meeting specific criteria.

However, the provision of incentives is considered significant in boosting sales figures and the trend of electric cars in the country, especially for newcomers like BYD.

BYD is one of the manufacturers receiving incentives for imported electric cars. The units sold are imported completely built-up from China, but their prices are competitive thanks to subsidies.

Without incentives from the government, what consumers fear is a surge in taxes on imported electric cars, which would impact the on-the-road price.

Photo: KatadataOTO

“The concern about price hikes is reasonable if the incentives for completely built-up imported electric cars are indeed stopped after 2025, as mentioned in the roadmap,” said Josua Pardede, Chief Economist of Permata Bank to KatadataOTO, recently.

It should be noted that incentives for imported electric cars will end in 2025. After that, manufacturers will be required to assemble their products in Indonesia to help support the domestic automotive industry.

If they fail to meet these requirements by 2026, the bank guarantee from each brand receiving the incentive will be forfeited.

Then, the car prices are likely to increase due to the import costs imposed on each model.

Josua did not deny that this speculation could ultimately cause consumers to postpone their purchases.

“The contribution of electric cars to market growth could shrink. In fact, in 2025 alone, electric car sales have started to slow down since the middle of the year, following the general weakening of the automotive market,” Josua asserted.

For your information, some time ago the Minister of Industry re-proposed the provision of automotive incentives to help domestic sales.

If incentives are not provided, analysts even predict that new car sales in Indonesia as a whole will decline or stagnate.

Photo: BYD

However, there is still hope to boost new car sales figures in the country to return to the record of one million units annually.

Besides imported electric cars, vehicle types that are considered eligible for subsidies are units with a high Domestic Component Level (TKDN).

For example, Low Cost Green Cars or LCGCs, and other volume-maker models like Low Multi Purpose Vehicles (LMPVs).