by Bernadette Cristina and Stefano Suleiman
JAKARTA (Reuters) – Sales of electric cars in Indonesia jumped last month after the government rolled out tax incentives, auto officials said, in an early sign that electric vehicle (EV) adoption is gaining traction in Southeast Asia’s largest economy. is being received.
Effective April, Indonesia slashed the value-added tax (VAT) on electric cars from 11% to just 1%, provided they are manufactured with at least 40% local content.
Hyundai Motor Co’s sport-utility vehicle IONIQ 5, a model eligible for tax cuts, saw sales triple to more than 600 units in April from the previous month, Sangge Yoon, an executive at Hyundai Motor ASEAN, told Reuters. During a symposium on Energy Transformation in Jakarta.
“Right now EVs are very expensive because of the battery,” Yoon said Tuesday. “So I think initially we need a kind of subsidy from the government and that will drive the demand for EVs.”
He said Hyundai aims to sell 10,000 units of the IONIQ5 in Indonesia this year, helped by tax cuts and shortages in semiconductor chips.
This is compared to the 3,000 units sold since the model’s launch in 2021.
Sales of the Wuling Air EV, a small car manufactured by SGMW Motor Indonesia, part of a joint venture (JV) with Chinese firm Wuling Motors Holdings, grew by over 80% on a monthly basis to over 740 units. said Dayan Asmahani, marketing director for the Indonesian arm of the joint venture.
The two models are the most popular electric cars in Indonesia.
Hyundai’s Yoon said the South Korean company plans to introduce more battery-EV models in Indonesia to capture the growing market.
Fitch Ratings said in February that sales of four-wheeled EVs, including hybrid models, in Indonesia are expected to exceed 50,000 units in 2023, up from 20,681 units last year, noting that government incentives could provide potential upside to the forecast. Are.
(Reporting by Stefano Suleiman and Bernadette Cristina; Writing by Gayatri Suroyo; Editing by Kanupriya Kapoor)