CNN Indonesia
Tuesday, 05 Mar 2024 14:51 IWST
APPI revealed that 80 percent of electric car purchase transactions are carried out in cash, so credit distribution is still minimal. (Photo: CNN Indonesia/ Adi Ibrahim)
Jakarta, CNN Indonesia —
Chairman of the Association of Indonesian Financing Companies (HELP) Suwandi Wiratno revealed that around 80 percent of purchase transactions electric car done in cash, aka no debt.
Therefore, said Suwandi, the distribution of financing for electric vehicles is still minimal.
“80 percent of people still pay for EV (electric vehicle) purchases,” said Suwandi in a press conference at the Park Hyatt, Central Jakarta, Tuesday (5/3).
Based on data from the Financial Services Authority (OJK) as of October 2023, financing from leasing companies for electric vehicles is still around 0.01 percent of total financing.
“So there is still no demand for financing (electric car credit),” he continued.
Suwandi revealed that there is a lack of credit for electric cars because the majority of buyers are people who have sufficient funds, and are aiming for a first experience or trying something new.
“Today’s EV buyers are mostly people who at least have sufficient funds. And secondly, they want a first experience,” he said.
Apart from that, he views that the price of electric vehicles is still relatively expensive, while the market segmentation of finance companies is the lower middle class.
“And the vehicles we finance on average are around IDR 200 million or what we know as LCC (Low-Cost Green Car),” said Suwandi.
“We are waiting for more and more ATPMs (single brand holding agents) or brands to introduce electric vehicles. Hopefully, there will be EVs that are cheap,” he continued.
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2024-03-05 07:51:02
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