Indonesia Electric Vehicle Market – Industry Analysis and Forecast (2022-2029)

Indonesia Electric Vehicle Market was valued at US $ 533.19 Mn. in 2022. Indonesia Electric Vehicle Market size is estimated to grow at a CAGR of 20.96%. The market is expected to reach a value of US $ 2020.13 Mn. in 2029.
Indonesia Electric Vehicle Market Overview:
Globally, the development of electric vehicles (EV) signaled a fundamental shift in the Indonesian transportation sector's policies. Indonesia is ideally positioned to become a major player in the EV supply chain, given the country's nickel reserves. To be a part of the region's EV future, Indonesia needs invest in technology, talent resources, renewable energy, and infrastructure. To keep things in context, the world's largest island accounts for nearly a fourth of the world's nickel reserves. Nickel is an important component in the manufacture of batteries. Nickel reserves was around 94 million metric tons in 2022. Indonesia has 21 million metric tons of that totals, while Australia has 20 million metric tons. According to Indonesia's Coordinating Minister for Maritime Affairs and Investment, the country will require up to US$35 billion in investment over the next five to 10 years to develop its EV ecosystem and secure a vital position in the EV supply chain.To know about the Research Methodology:- Request Free Sample Report
Indonesia Electric Vehicle Market Dynamics:
Abundant natural resources:

Nickel is considered a vital component in the production of electric car batteries. Indonesia boasts one of the world's largest nickel deposits. Indonesia is home to a quarter of the world's known nickel resources. Indonesia produced 760,000 tons of nickel in 2022, with a total nickel reserve of 21 million metric tons. In addition to having the world's greatest gold reserve, Indonesia's Grasberg mine also has the world's second-largest copper deposit, which is required for the production of electric vehicle batteries.

Indonesia's Electric Vehicle Roadmap:

Indonesia has ambitious intentions to become a prominent player in the electric vehicle sector, with a $17 billion road map. The goal is to have 2.1 million electric motorcycles and 400,000 electric vehicles on the road by 2025, with 20% of them being manufactured locally. One of its objectives is to have an all-electric bus fleet for Jakarta's metropolitan mass public transportation system in less than seven years, 14,000 electric buses are required to achieve this aim. PLN, the state-owned power company, has also committed to installing over 31,000 additional electric vehicle charging stations by 2030. PLN has made $3.7 billion available for commercial and public sector investment in Indonesia to meet its 10-year pledge. Also, various government programmes to improve electric car capabilities are under underway. This is good news for companies working on electric vehicle development.

Investors appear to be protected as a result of the government's strong participation in the Indonesian EV industry. Hyundai and LG, two South Korean conglomerates, signed a Memorandum of Understanding (MoU) with the Indonesian government in late July to form a joint venture firm specialising in electric vehicle battery manufacture in Karawang, West Java. This $1.1 billion investment firm plans to generate over 150,000 electric vehicle batteries per year.

The Indonesian electric vehicle market is still in its beginnings:

The electric vehicle industry in Indonesia is still in its infancy, with electric vehicles accounting for only 0.2 % vehicle sales in 2019. However, the University of Indonesia discovered in September 2022 that over 70% of Indonesians want to purchase an electric vehicle, citing environmental concerns as the key cause, indicating that Indonesians are more aware of EVs.

According to MMR, Indonesia's electric vehicle sales will skyrocket in the coming years. Electric passenger vehicle sales are forecast to reach 250.000 units in 2030, accounting for 16% of all new passenger car sales, while demand for electric motorcycles is expected to reach 1.9 million units, accounting for 30% of all new two-wheeler sales. With over 22% of the world's nickel deposits and government attempts to reduce emissions by 29% over the next decade, Indonesia has created an ideal environment for electric vehicle manufacturers to invest.

Incentives for electric vehicles in Indonesia are provided by the government:

The Indonesian EV industry is included as a priority sector in the government's most recent Positive Investment List. Benefits such as % business ownership and numerous tax benefits are drawing investors from all around the world. For example, EV enterprises with a capital investment of more than IDR 500 billion will earn a 100 % corporate income tax credit, while investments of IDR 100-500 billion will receive a 50 % reduction. The Indonesian government has consistently announced laws aimed at accelerating the growth of the country's electric vehicle sector. The government officially announced its Electric Vehicle (EV) roadmap in September 2022, which was published as part of Minister of Industry Regulation No. 27/2022. The roadmap lays out the country's ambition to become a major player in the EV market by 2030, with a planned local production capacity of over 600,000 four-wheeled EVs and 2.45 million two-wheeled EVs annually.

Since then, a slew of measures have been released to help the EV industry grow, including the Ministry of Energy and Mineral Resources' (MoEMR) MoEMR Regulation No. 13/2022 and the recently released Positive Investment List (PIL). Companies that contribute to the development of Indonesia's sector are eligible for a variety of benefits under PIL, ranging from the ease of obtaining business licences to the use of various tax incentives, such as a 0% luxury vehicle tax for vehicles with zero emission technology, as stipulated in Government Regulation No. 47/2022.

Indonesian Electric Vehicle Market Awareness:

In 2019, only 705 total EV sales were registered in Indonesia, with hybrid sales being 685 units and PHEV (Plug-in Hybrid Electric Vehicle) sales totaling 20. The number of electric car sales in Indonesia reached 1,900 units in June 2022. There are 1,378 hybrid models (72.5%), 34 PHEV models (1.8%), and 488 BEV models (25.7%) in this total. When compared to overall car sales in Indonesia in the first semester of 2022, interest in electric vehicles accounts for 0.5 % vehicle sales. The Indonesian EV sector is still in its infancy, as evidenced by these numbers. However, suggest that market interest has increased dramatically. Given the country's growing urbanisation and the high proportion of adolescents in the population, there is no doubt that interest in electric vehicles will grow as Indonesian society progresses toward a more sustainable lifestyle.

The country still has a long way to go in terms of creating its electric vehicle ecosystem. By November 2022, just 219 electric vehicle charging stations have been completed in 185 places around Indonesia. In comparison, by the end of 2022, the archipelago will have approximately 5,500 official conventional fuel stations. However, dismissing the EV sector in Indonesia would be a mistake, given the market potential presented by the world's fourth largest country in terms of population. Toyota Indonesia has already announced intentions to develop an electric car battery assembly plant at its facilities in Karawang, West Java, beginning next year. This aligns with the company's ambitions to begin manufacturing hybrid electric cars (HEVs) around the same time.
Some Challenges:
• Indonesia's lack of charging infrastructure is a big obstacle to its progress as an EV-friendly country. There will be no significant EV production or sales in the country unless there are numerous charging stations. Even big EV manufacturers such as Nissan and BMW will not bring their vehicles to Indonesia until there are many more charging stations. In-home chargers are a versatile option that may be used in a variety of situations. However, if you need to travel or have a long commute, a well-connected charging network is essential. Indonesia has 1,500 charging stations for electric vehicles, with 1,100 of them in Jakarta. With a total size of over 700,000 square miles, this leaves very few for the remainder of the country (1,900,000 km2). This is a significant impediment to the adoption of electric vehicles.

• The relatively high cost of EVs in Indonesia, changing consumers' mind-sets to persuade them of the benefits of switching from regular cars to EVs, and developing the necessary infrastructure for the growth of an EV market – including the construction of charging stations throughout the country – are all barriers to growth. There has already been some progress in this area, with charging stations being installed in Jakarta and Serpong at the end of 2022, and feasibility studies being completed or underway elsewhere. Mitsubishi began creating a charging station in Sumba at the end of 2022 as a result of one of these investigations. Meanwhile, in December 2022, the state-owned energy generation and distribution business Perusahaan Listrik Negara announced plans to build 180 more charging stations across the country. The World Bank, on the other hand, has expressed reservations about the country's ability to become a key participant in the EV export market due to high non-tariff obstacles and a lack of adequate integration into supply chains.
Indonesia Electric Vehicle Market Segment Analysis:
Based on Type, the market is sub-segmented into BEV, PHEV and HEV. The Hybrid electric vehicle segment was leading the market in 2022. In Indonesia, hybrids are significantly more widespread than plug-in hybrids and fully electric vehicles. In 2022, 685 hybrids and 20 plug-in hybrids were sold in Indonesia, according to the Indonesian automotive association GAIKINDO. Hybrids once again led the e-car market in 2022, with only six plug-in hybrids sold. Hybrids' popularity is unsurprising: their ability to combine electricity and gasoline combustion eliminates the need for Indonesia's restricted charging outlets. They're also less expensive.

The objective of the report is to present a comprehensive analysis of the Indonesia Electric Vehicle Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market has been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also help understand the Indonesia Electric Vehicle Market dynamic and structure by analyzing the market segments and projecting the Indonesia Electric Vehicle Market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the Indonesia Electric Vehicle Market make the report investor’s guide.
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Indonesia Electric Vehicle Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 533.19 Mn.


Forecast Period 2023 to 2029 CAGR:
20.96%
Market Size in 2029:
US $ 2020.13 Mn.


 Segments Covered:
by Type
• BEV
• PHEV
• HEV


by Vehicle Type
• Two Wheeler
• Passenger Car
• Commercial Vehicle



Indonesia Electric Vehicle Market Key Players
• BMW AG
• DFSK Motors
• Honda Motor Co., Ltd.
• Isuzu Motors Limited
• Mazda
• Mitsubishi Motors Corporation
• Nissan Motor
• Suzuki Motor Corporation
• Toyota Motor Corporation
• Wuling Motor (SGMW Motors)
• Mercedes Benz
• Tesla
Frequently Asked Questions:
1] What segments are covered in the Indonesia Electric Vehicle Market report?
Ans. The segments covered in the Indonesia Electric Vehicle Market report are based on Type and Vehicle type

2] Who are the top 5 key players for Indonesia Electric vehicle market?
Ans. BMW AG, DFSK Motors, Honda motor, Mazda and Nissan motors.

3] What is the market size of the Indonesia Electric Vehicle Market by 2029?
Ans. The market size of the Indonesia Electric Vehicle Market by 2029 is US $ 2020.13 Mn.

4] What is the forecast period for the Indonesia Electric Vehicle Market?
Ans. The Forecast period for the Indonesia Electric Vehicle Market is 2023-2029.

5] What was the market size of the Indonesia Electric Vehicle Market in 2022?
Ans. The market size of the Indonesia Electric Vehicle Market in 2022 was worth US $ 533.19 Mn.