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Indonesia, Chinese firms combine to drive EV growth

Greater environmental awareness, joint ventures increase demand in Southeast Asian country

By YANG HAN in Hong Kong and LEONARDUS JEGHO in Jakarta | China Daily | Updated: 2024-08-15 07:30
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An employee works on an assembly line of Wuling Motors Indonesia in Bekasi, Indonesia, on Feb 24. WANG TENG/XINHUA

Growing appeal

Since 2017, over 150,000 vehicles from Wuling have been sold in Indonesia, said Wang Weisen, deputy general manager of SGMW Motor Indonesia, or Wuling Motors.

The Wuling BinguoEV is the second EV model Wuling introduced in Indonesia, following the Airev, which was launched in 2022.

In 2023, Airev and BinguoEV sold more than 10,000 units, making them the two bestselling new EVs in Indonesia and securing the company the top spot in the market, with a 50 percent share. In May, Wuling's latest model, the CloudEV, which has a more spacious cabin, was launched to meet the different needs of drivers.

"Between January and June 2024, Wuling accounted for 68.4 percent of the new energy vehicle market in Indonesia," Wang said.

Rubby Lie, branch head of Prima Wahana Auto Mobil, Wuling's largest authorized dealership in Indonesia, attributed the popularity of Chinese cars to rising awareness about the need to reduce carbon emissions to combat climate change.

A 2023 survey by consulting firm PwC estimated that Indonesia's EV market will exceed $20 billion by 2030 due to consumer awareness of eco-friendly vehicles and government incentives.

"Electric cars will continue to enter Indonesia. Using them is now becoming a trend in Indonesia," Lie told China Daily. He said the presence of China's BYD and other renowned brands in Indonesia is attracting more local buyers.

In May, Indonesian Transportation Minister Budi Karya Sumadi said the number of EVs in Indonesia had reached 33,225 units. The figure was nearly four times the 7,923 EV vehicles sold between January and November 2022, according to the industries association.

Lie said favorable government policies, such as extending fiscal incentives and easing the deadline for manufacturers to fulfill a 40 percent quota of local components for EVs, had encouraged more automakers to build plants in the country.

"Since last year, an increasing number of Chinese EV brands have entered the Indonesian market, which not only provides local consumers with more options, but also supports the development of Indonesia's EV industry," said Garinzafira Shabrina, analysis supervisor of SGMW Motor Indonesia.

Shabrina, who joined Wuling in 2018, said she was a bit nervous at first, as she did not know much about the working style of Chinese companies.

"Now I feel very proud about working at Wuling," said Shabrina, noting the company has more than 130,000 Indonesian customers, and a sales service network of 150 partners.

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