The Indonesian electric vehicle market is projected to reach a total valuation of US$2.02 billion, or equals to IDR 30 trillion, based on a report published by Maximize Market Research.
The report stated that the Indonesian electric vehicle market value had reached US$533.18 million or equals to IDR 7.93 trillion in 2020. The number is projected to growth with a 20.96% compound annual growth rate up until 2029. Consequently, the total value is predicted to reach US$2.02 billion.
The report also covers analysis on strategy, trend and micro and macro-economic scenarios, price analysis and short-term market conditions. It also includes trend that can affect the growth of electric vehicle market development in Indonesia in the future.
The report also highlighted the main factor that encourages electric vehicle market growth including abundant natural resources such as nickel.
Despite being in its early stage, the Indonesian electric vehicle market is said to have major potential with the consumers showing increasing interest. In addition, there is also the trend of conserving the environment and having a more sustainable lifestyle.
Sales expected to increase
With the predicted growth of electric vehicle market in the future, sales of electric passenger vehicle is said to reach 250,000 unit in 2030. The number constitutes 16% of the total sales of passenger cars.
Furthermore, the demand for electric motorcycle is also said to increase with a predicted 1.9 million unit sold in 2023, which constitutes 30% of the total sales of new motorcycles.
Meanwhile, based on data gathered by the Indonesian Automotive Industry Association (Gaikindo), as many as 121 battery-powered electric cars were sold in 2020. As of May 2021, the number increased by 70% to 395 units.
The number above does not include sales of cars with hybrid technology, which already hit 1,000 units in 2020 and from January to May 2021.
Gaikindo also recorded that the volume of electric vehicle wholesale in the domestic market in December 2022 had reached 2,404 units.
Accumulatively, the total volume of electric cars wholesale from January 2022 to December 2022 had reached 10,327 units.
