Automotive - Indonesian automotive market is starting to shift to EVs

Automotive - Indonesian automotive market is starting to shift to EVs The Ministry of Industry (Kemenperin) highlighted the dynamics of competition in the national automotive industry amid the entry of increasingly aggressive Chinese car brands into the domestic market. At the same time, several Japanese brand dealers have been reported to close, in line with changing market preferences. Reportedly, the Honda Pondok Pinang dealership in South Jakarta has closed, adding to the list of Honda dealers that have ceased operations amid the intense competition in the automotive industry. Minister of Industry Agus Gumiwang Kartasasmita believes that this condition poses a challenge for Japanese automotive manufacturers to adapt to market developments in Indonesia. According to Agus, the competition is closely tied to the changing consumer demand that is increasingly leaning toward electric-based vehicles. Therefore, Japanese manufacturers need to understand the direction of government policies that are now encouraging the acceleration of electric vehicle (EV) adoption. "Everything is related to the market. So, they have to be able to adjust to what the market wants," said Agus. Furthermore, the government has also directed that the electric vehicle ecosystem be expanded, not only for passenger cars but also to include motorcycles, trucks, and busses. (Source : Kontan)