The wholesale sales of battery electric vehicles (BEVs), which are based on battery technology, have experienced a remarkable surge in January-May 2023, reaching a total of 4,663 units. This figure represents an astonishing increase of 1,186 percent compared to the 363 units sold during the same period last year. Despite this remarkable growth, the current BEV population is still considered relatively low, falling short of the government’s target.
According to the guidelines outlined in Regulation No. 6/2022 on Specifications, Roadmap for Development, and Calculation Provisions for Domestic Component Value of Battery-Based Motor Vehicles, the government has set a production target of 400,000 units for BEVs by the year 2025.
However, the current production rate is significantly below this ambitious quantitative goal, indicating the need for further efforts to accelerate the adoption of electric vehicles.
It is worth noting that the government has taken significant steps to incentivize the purchase of electric vehicles. The Macroeconomic Framework of Fiscal Policy (KEM-PPKF) 2024 highlights the government’s commitment by stating, “Indonesia provides approximately 42 percent of the selling price as incentives for electric vehicle products.”
These incentives include a 13 percent equivalent luxury goods sales tax (PPnBM), a three percent import tax, an 18 percent vehicle registration fee (BBNKB) and motor vehicle tax (PKB), as well as a 10 percent value-added tax (PPN DTP). Such measures aim to make electric vehicles more accessible and affordable for consumers.
Despite these efforts, the current market share of pure electric vehicles remains relatively modest, accounting for only 1.1 percent of the overall automotive market. However, the sales data from the Association of Indonesian Automotive Manufacturers (Gaikindo) reveal the increasing popularity of specific electric vehicle models.
The Hyundai Ioniq 5, for instance, has emerged as the market leader, selling a noteworthy 2,673 units during the January-May 2023 period. Following closely is the Wuling Air EV, which recorded sales of 1,444 units. Other notable electric vehicle models include the BMW iX with 143 units sold, the Toyota bZ4X with 111 units sold, and the Nissan Leaf with 45 units sold.
As the government continues to implement policies and provide incentives to promote electric vehicles, it is expected that the sales figures and market share of battery electric vehicles will experience further growth in the coming years.
These developments align with the global trend toward sustainable transportation and signify a significant step towards reducing carbon emissions and fostering a greener automotive industry in Indonesia.
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