Gaikindo Notes That EV Battery Market Shares Grow 9.7 Percent Until Semester I-2025

Electric Vehicle Battery (Photo: Unsplash)

JAKARTA - The Association of Indonesian Automotive Industries (Gaikindo) noted that the market share of battery electric vehicles (BEV) in Indonesia had reached 9.7 percent in the first semester of 2025. This figure increased significantly compared to the market share in 2021 which was still below 1 percent.

General Secretary of Gaikindo Kukuh Kumara said that public interest in buying EVs is also high because the ecosystem has been formed. In addition, the government also provides tax incentives, so that the price of EV cars is relatively low compared to internal combustion engine (ICE) cars.

"As of July 2025, the BEV market share is almost 10 percent. Yesterday at GIIAS, people were enthusiastic about buying EVs, especially since the price was relatively attractive," said Kukuh in a media discussion entitled Import BEV Incentive Polemic in Jakarta, Monday, August 25.

However, said Kukuh, this condition is a challenge for the Indonesian automotive industry, especially the ICE vehicle factory. According to him, domestic ICE car manufacturers are under pressure due to modern sales.

Moreover, producers follow the government's requirements to meet the high level of domestic components (TKDN) of around 90-100 percent. Meanwhile, companies that get easy imports of EV cars only need to meet lower TKDN values.

"Kami lihat mobil TKDN-nya tinggi volume (produksi dan penjualan) menurun, sementara kemudian muncul kendaraan listrik TKDN-nya sangat rendah dan volumenya meningkat. Ini akan mengganggu equilibria industri dalam negeri kami," katanya.

Not only that, Kukuh revealed, domestic car manufacturers must also face financing problems such as car purchase credit. This is because car demand depends on credit availability.

If the financing company complicates lending, according to him, the number of people who can buy cars will decrease and this will result in the production and sales of cars falling.

"BEV they succeeded in increasing their adoption, but at the same time we also need to think about the existing industry. So, it should be together so that we can also grow," he said.

According to Kukuh, the government is currently not paying attention to the existing automotive industry. He said the current decline in the domestic market was due to the weakening purchasing power of the people and the increasing tax on motorized vehicles (PKB) which became levies for local governments.

In addition, the government also does not provide incentives to the automotive industry, such as stimulus injections for BEVs aimed at attracting new investments. In fact, according to Kukuh, domestic car sales managed to increase when the government provided VAT DTP in 2021.

"As soon as the VAT DTP policy during the pandemic was given, there were many enthusiasts and were able to boost the condition of the national automotive industry at that time. In quite a bit of time, total sales rose again. This means that incentives are quite effective in boosting vehicle purchases," he added.