Hyundai's Reason to Wait for Government Incentives to Delay the Release of New Electric Cars

Hyundai Ioniq 9 electric car. (Photo: Hyundai)

Hyundai Motors Indonesia (HMID) is ready to launch the latest electric car in Indonesia. However, the South Korean manufacturer is still waiting for confirmation of government policies on incentives for electric cars for several reasons.

Hyundai Motors Indonesia Chief Operating Officer (COO) Fransiscus Soerjopranoto, said that government incentives have a significant impact on people's purchasing power. Because, incentives can make the selling price of electric cars more affordable.

"We still have EVs. We are still waiting for a decision from government regulations. Whether it will continue the incentives or the incentives will be delayed," Fransiscus Soerjopranoto told reporters at the N Brand Experience Center, SCBD, Central Jakarta, Tuesday, December 23.

"That if we want to be in a good condition or position in selling in Indonesia, there are two things we must pay attention to. The first is customer preference, and then the second is government regulations or government regulations," he continued.

The man who is familiarly called Frans said that electric cars are currently experiencing a fairly extraordinary surge. Where, its contribution is around 5 percent last year and now it is 9 percent, the same as hybrid.

"So the two of them are almost 20 percent, Well from there we see that we need the name of incentive regulation for the government. Well it starts from Presidential Decree 255 in 2019, then the government regulation for EV cars appears. Well we will see that the government regulation can not later in 2026 can not encourage growth than the total automotive industry," he explained.

Furthermore, Hyundai wants to see that ICE, hybrid and same EV can grow together. In addition, the contribution of electric cars is also very large and there are also several powertrains that may be able to increase automotive sales nationwide.

As is known, the government previously disbursed incentives for electric cars. The goal is that the penetration of electric cars can be more targeted at the community, and the results are quite good.

However, the government has given a signal that incentives for electric cars will be stopped in 2026. As conveyed by Coordinating Minister for Economic Affairs Airlangga Hartarto.

In addition to electric cars, Hyundai is also ready to hit the Indonesian car market in early 2026 by launching two models at once. Both models will fill different segments, namely one internal combustion engine (combustion) model and one hybrid-powered model.