End of Electric Vehicle Incentives to Boost LCGC Market
Executive Summary
Key insights and market outlook
The expiration of electric vehicle incentives at the end of 2025 is expected to significantly impact Indonesia's automotive market. Low Cost Green Car (LCGC) segment is predicted to regain popularity, especially among lower-middle-class consumers who are sensitive to prices and installments. According to ITB automotive expert Yannes Martinus, 2026 will be a phase of market maturity for electric vehicles, with growth rates slowing down due to the end of massive import incentives.
Deep Dive Analysis
End of Electric Vehicle Incentives: A New Era for LCGC Market
Impact on Indonesia's Automotive Market
The expiration of electric vehicle incentives at the end of 2025 is expected to have a significant impact on Indonesia's automotive market. The Low Cost Green Car (LCGC) segment is predicted to regain popularity, especially among lower-middle-class consumers who are sensitive to prices and installments.
Market Maturity for Electric Vehicles
According to ITB automotive expert Yannes Martinus, 2026 will be a phase of market maturity for electric vehicles. The growth rate of EVs is expected to slow down due to the end of massive import incentives. "Tahun 2026 harus kita baca sebagai fase pendewasaan pasar, di mana pertumbuhan EV tidak lagi setinggi masa banjir insentif impor sebelumnya," ujar Yannes.
Sources & References
Source References
Story Info
Topics Covered
Key Events
Berakhirnya Insentif Mobil Listrik
Pasar LCGC Berpeluang Bangkit