Jakarta –
The government encourages production and sales electric car one of which is through the Gaikindo Indonesia International Auto Show (GIIAS) automotive exhibition which will be held August 10-20 2023 at ICE BSD, Tangerang. However, this event is considered not to have attracted many electric car buyers.
Reuters in the article ‘As Indonesia Pushes EV Dream, Car Shoppers Stay Cautious’ reveals several reasons that make visitors not look at electric vehicles (EV / Electric Vehicle) to buy. Among them are (1) prices that are considered unaffordable, (2) the availability of charging stations that are inadequate, and (3) doubts about a new brand.
“We must first get people interested in EVs, starting with prices that should be 60% cheaper,” said a visitor named Dody Hartono (54) quoted by Reuters, Monday (21/8/2023).
Dody just plans to buy his first electric car in 2024 while waiting for a better deal. He is interested in buying if the price of electric cars ranges from US$ 10,000 to US$ 13,000 or the equivalent of Rp. 152.94 million to Rp. 198.82 million (exchange rate of Rp. 15,294).
There are only two electric cars offered near that range, namely the Air EV Lite from Wuling and the E1 from China’s Seres Group, priced at around US$12,300.
Another visitor, Hendra Pratama (42), who bought an electric vehicle at an auto show, said that premium prices in Indonesia needed to be lowered to attract lower-middle-class consumers.
“It’s unreachable,” he said.
Unlike Hartono and Pratama, another visitor, Hendra Budi (44), thinks price is not a problem for him. He wants to be more confident with the brands offered.
“If Toyota or Honda launch a full EV, we will be interested,” he said.
It is known, the Indonesian government has cut the value added tax (VAT) on electric vehicles to 1% from 11%. This makes the starting price of the cheapest Hyundai Ioniq 5 below US$ 45,000 (Rp. 688.23 million), from above US$ 51,000 (Rp. 780 million) in Indonesia.
In comparison, one of China’s best-selling electric cars, the BYD Seagull starts at just over US$10,000, but other companies and even China’s own automakers struggle to match such prices in export markets.
BYD’s ATTO 3, the best-selling electric car in Southeast Asia in the first quarter, started in Thailand for just over US$31,000 (Rp 474.11 million).
(aid/hns)
2023-08-21 13:37:44
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