Automotive - Competition in the EV car market is tightening

Automotive - Competition in the EV car market is tightening Indonesia's BEV market is booming, with sales from January-August 2025 (51,191 units) already surpassing the entire 2024 total (43,188 units). This growth is largely fueled by new models and government incentives for Completely Built-Up (CBU) imports. However, a major shift is coming. The government will halt these CBU import incentives at the end of 2025. From 2026 to 2027, manufacturers who benefited must fulfill a 1:1 domestic production commitment. Failure to meet these local content and production requirements will result in the forfeiture of bank guarantees. This policy change will test brands' commitment to local investment, marking a pivotal transition from import-led growth to a domestically-focused BEV industry. (Source : Bisnis Indonesia) Comment : As of August 2025, the competition in Indonesia's electric vehicle market has intensified. BYD Group's dominance is evident. This signals a tight race for market leadership as new brands and models continue to drive a significant increase in overall electric car sales in the country. The Indonesian BEV market is on a trajectory of impressive growth, driven by an expanding selection of models and government incentives. However, the impending halt of CBU import incentives marks a pivotal moment. The focus is shifting from simply selling imported vehicles to building a robust domestic BEV manufacturing ecosystem, a transition that will test the commitment of current market players and define the future of the industry in Indonesia. Maintain OW stance on the sector