Electric Car Prices Are Still High, Nissan Asks For Blessing So It Can Sell Cheap Electric Cars To Indonesia

Nissan LEAF electric car (AntaraNews)

JAKARTA – Electric cars have entered Indonesia, but they are still expensive. This is a challenge for car manufacturers. Nissan hopes to bring electric cars to Indonesia at affordable prices.

Evensius Go as President Director of PT Nissan Motor Distributor Indonesia (NMDI) stated that the price of electric cars is a challenge in itself in increasing sales in the country.

Domestically, Nissan Indonesia has sold its electric car, the Nissan LEAF for Rp. 649 million for the one tone type. As for the dual tone, it is priced at Rp. 651 million. This price is still relatively high when compared to the best-selling passenger car, which is at a price of Rp. 200 million to Rp. 300 million and controls 70 percent of the Indonesian market share.

"Speaking of electric cars in Indonesia, yes, if you want to categorize [the price] is still quite high because the average electric car is still above Rp600 million. Why? The reason is because the usual production of batteries is still too expensive. But I believe that in the future the price of electric cars will decrease," Evensius said in a virtual Nissan-Forwot event held on Wednesday, October 6, as quoted by CNN.

Evensius explained that his party would educate the public regarding electric cars. This effort is in line with Nissan's agenda in various potential countries for marketing zero emission cars, including Indonesia. Nissan itself has provided a leak of its electric car concept model which will be sold at a price of Rp. 200 million.

“How does Nissan respond to this competition? The first is to introduce electric car technology as Nissan's global vision. Pray for [Nissan] to have an electric car product in that segment [price of Rp. 200-Rp. 300 million] that we can bring to Indonesia. Mainly we support government programs, so that's our target," said Evensius.

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In addition, Nissan Indonesia has also presented environmentally friendly cars such as the Nissan Kicks e-Power which is powered by a DOHC gasoline engine, 1,200 cc 3-cylinder to charge lithium ion batteries. The wheel drive also relies on an electric motor from the battery power supply.

The Kicks e-Power car is a hybrid car in Indonesia. The car is not fully electric. Kicks e-Power itself is sold for under IDR 500 million.

“For the Rp500 million segment, we have started with e-Power. We hope that e-Power, one of our strategies, gets good market volume. We believe that in the next 5 years e-Power will be the choice of the Indonesian people. We continue to educate the market,” said Evensius.

With the regulation from the Government regarding PPnBM tariffs specifically for plug-in hybrid vehicles, fuel cells, to pure electricity, it is hoped that it will be able to change the direction of the country's automotive industry. The PPnBM regulation is considered to be able to boost sales of low-emission cars in the country.

"I think when the government enforces this, I believe the Indonesian automotive structure will change. "Electrification (hybrid and electric cars) will have a positive impact, and this is good for how the industry encourages investment in Indonesia," said Evensius.

In the future, electric cars in Indonesia will likely experience significant growth. A number of car manufacturers have also begun to turn to the development of electric cars because they are considered environmentally friendly. It is also possible that electric cars can replace conventional cars that still use fossil fuels in the next few years.