The Automotive Industry Optimistic that Hybrid Car Incentives Will Boost Sales

February 18, 2024, 06.15 PM  | Reporter: Dendi Siswanto
The Automotive Industry Optimistic that Hybrid Car Incentives Will Boost Sales

ILUSTRASI. The Indonesian government has promised to provide incentives for electric vehicles with hybrid technology to encourage energy savings. Photo: Toyota Astra Motor Doc. Tuesday (21/2/2023), the first export activity of the Kijang Innova Zenix Hybrid EV was at TMMIN's Karawang Plant 3, West Java.

AUTOMOTIVE - JAKARTA. Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that the government will provide incentives for hybrid electric cars.

However, he did not explain in detail the scheme or when the incentives will be given. But what is clear, the discourse on the provision of these incentives will still be studied.

"It will be studied (hybrid car incentives)," said Airlangga to the media, Thursday (15/2).

In response to this, the Chairman of the Association of Indonesian Motor Vehicle Industries (Gaikindo) Jongkie Sugiarto said, it is indeed appropriate that incentives are also aimed at hybrid cars. This is because hybrid cars are also fuel efficient and low in pollution.

"If incentives can be given then sales will increase rapidly, because the selling price is also more affordable compared to electric cars," Jongkie told, Sunday (18/2).

Moreover, said Jongkie, hybrid cars also do not require additional infrastructure such as electric vehicle charging stations.

Meanwhile, the Head of the Trade and Investment Industry Center of the Institute for Development of Economics and Finance (Indef) Andry Satrio Nugroho agreed, incentives also need to be given to hybrid car consumers, especially as people's purchasing power is growing.

However, the urgency of providing these incentives needs to be considered.

"The provision of incentives (hybrid cars) has its own urgency, whether this will only boost sales or there are other targets," said Andry.

Andry believes, the provision of these incentives will boost the sales of hybrid cars as reflected in the incentives that have been disbursed for battery-based electric cars for battery electric vehicles (BEV).

"This is what I think should also be given incentives. It means we want to encourage vehicle production to be maximized for export activities. Not just domestically," he added.

Based on Gaikindo data, domestic sales of electric cars reached 17,147 units throughout 2023 and electric car exports amounted to 1,504 units.

Furthermore, hybrid car sales throughout 2023 reached as many as 54,656 units and hybrid car exports amounted to 27,710 units.

"This needs to be detailed again the incentives given. What I think needs to be given is how when production is encouraged for export then it might get incentives, and the second is the issue of local components used in the car. That can be given incentives," explained Andry.


Editor: Syamsul Azhar

Latest News