Chinese EVs drive record high sales in Indonesia, set for explosive growth in 2025

[JAKARTA] Chinese carmakers drove a huge surge in Indonesia’s electric vehicle (EV) sales last year, more than doubling to a record 43,000 units. Growth is expected to continue in 2025 with solid sales tax incentives for local production, further shaking up the country’s traditional automotive industry.

Latest data from the Association of Indonesia Automotive Industries (Gaikindo) pointed to a surge of more than 150 per cent in battery electric car sales to 43,188 units in 2024. China’s BYD led the charge, selling over 15,000 units, solidifying its position as a powerhouse in South-east Asia’s EV market.

This surge contrasts sharply with conventional car sales, which fell 14 per cent in wholesale to 866,000 units, and nearly 11 per cent in retail to some 890,000 units. This reflected changing consumer preferences and the growing influence of government-backed incentives for greener transportation options. Analysts anticipate that this growth trend will gain pace in 2025, bolstered by extended sales tax incentives for carmakers committed to establishing manufacturing facilities in Indonesia.