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Home Indonesia

Electric car sales surged in 2024, fueling energy transition

WNAM: by WNAM:
February 14, 2025
in Indonesia
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Electric car sales surged in 2024, fueling energy transition
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Jakarta (WNAM MONITORING): Domestic sales of electric cars in 2024 showed a positive increase, which supported improvements in energy transition, according to the Industry Ministry.

“With details of the domestic sales market share in 2024, for the xEV type (Hybrid, PHEV, and BEV), there was an increase of 60 percent from the previous year,” the ministry’s director general of metal, machinery, transportation equipment, and electronics industry, Setia Diarta, stated here on Wednesday (February 12).

Diarta remarked that the two- and three-wheeled motor vehicle industry recorded a production volume of 6.9 million units, with domestic sales of 6.3 million units.

Meanwhile, production in the four-wheeled segment of the motor vehicle industry reached 1.2 million units, with domestic sales of 865 thousand units.

“This figure shows the growth of public interest and concern for renewable energy vehicles,” he stated while showing growth data in the electrification segment.

To foster the industry’s continued growth, the ministry has set three policies that it claims will increase automotive sales in 2025.

In addition, the government provides import duty and sales tax incentives on government-borne luxury goods (PPnBM-DTP) for industrial companies that are building production facilities or developing production lines for battery-based electric motor vehicles.

Furthermore, tax incentives of the government-borne value tax (PPN DTP) according to the domestic content level (TKDN) will be provided for passenger and commercial vehicles marketed in the country.

The last policy that can stimulate vehicle sales in Indonesia is the provision of certain PPnBM for environmentally friendly vehicles (LCEV program).

These vehicles include LCGC/KBH2, Hybrid, BEV, hydrogen fuel cell, and flexy engines using bioethanol, as well as an additional PPnBM DTP of three percent for hybrid vehicles that participate in the LCEV program.

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