Electric Car Incentives Will Be Stopped Later This Year, Here's The Response Of GAC Indonesia

AION UT. (Photo: Afrizal/VOI)

The electric car incentive will end at the end of 2025, this is stated in the Minister of Investment Regulation Number 6 of 2023 in conjunction with Number 1 of 2024, which is a reference roadmap for the electric vehicle industry.

The regulation states that incentives in the form of exemption from Import Duty and PPnBM are only until December 31, 2025. After that period, the official import incentive scheme ended and producers were required to switch to local production in accordance with the Domestic Content Level (TKDN) roadmap.

GAC Indonesia is one of the manufacturers from China that receives imported electric car subsidies. Responding to the above, GAC Indonesia CEO Andry Ciu, said that he had observed that there would be such changes.

"We have observed that there will be a change in regulations at the end of 2025, he said it will change for imported vehicles," said Andry Ciu, when met in the Jakarta area, recently.

He further said that there were two main products that received imported incentives, namely AION UT and V and both of them were already assembled by Indomobil Group facilities.

In fact, both of them are claimed to have pocketed 40 percent TKDN according to the requirements. So the price is estimated to be stable in 2026.

"We have to see later when the regulation (transition after the import incentives) are issued, but so far it has not had any impact on the Completely Knocked Down (CKD) vehicle," he added.

He said GAC was ready to conduct local assembly following government regulations and was waiting for definite policies regarding price structures in the future.

"Local content 40 percent until 2026, Aion UT and Aion V meet the criteria," he explained.