THE INDONESIAN AUTOMOTIVE MARKET AT A GLANCE
- Indonesia is a large country with a population of 280 million and accounts for about half of the GDP of the Association of Southeast Asian Nations (ASEAN).
- The automobile industry is the second largest production in ASEAN, with annual sales of over 1 million vehicles.
- Indonesia’s position in the global automotive market has greatly strengthened, solidifying its role as a key player in the Asia-Pacific region. With a large and growing consumer market, Indonesia is attracting substantial foreign investment in automotive manufacturing, establishing itself as a center for production and market growth.
- Indonesia’s passenger car market was valued at $15.62 billion and is expected to grow to $23.33 billion by 2030, reflecting a compound annual growth rate (CAGR) of 4.2% from 2021 to 2030.
- The government has set an ambitious target of 3 million units in annual production by 2030, with projected passenger car unit sales reaching 657,800 vehicles in 2028.
- The automotive industry sector is targeted to become a global player and exporter by 2030, for both internal combustion engine (ICE) vehicles and electric vehicles (EV), The automotive industry is one of the most important sectors in boosting Indonesia’s economy.
- Indonesia has an ambitious plan for electrification. By 2030, the country aims to have at least 13 million electric motorcycles, including retrofitted ones, and 2.2 million electric cars on its roads.
- The Indonesian government is prioritizing the development of electric vehicle batteries, introducing policies and incentives such as tax exemptions and subsidizing the purchase of electric vehicles to promote the adoption of green vehicles and ensure the increased demand for nickel is met as the EV industry continues to grow.