#Automotive

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Indonesia's LCEV investment hits Rp22.37T; EV production expected to surge in 2026

The Ministry of Industry reported that total investment in Indonesia’s low carbon emission vehicle (LCEV) sector has reached Rp22.37 trillion (US$1.3 billion) since 2022 until September 2025 and produced some 878,000 LCEV units, with the support of some 274,000 local automotive component manufacturers.

Indonesia Business Post

Indonesia’s auto industry slumps as government finalizes 2026 incentive plan

The Indonesian automotive industry is facing one of its toughest years in a decade as weakening consumer purchasing power continues to drag down vehicle sales, with the government pledging a new round of fiscal incentives aimed at stabilizing and reviving the industry, which has strategic role in the country’s economy.

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Indonesia, Hyundai explore collaboration on national EV project

Indonesia is in talks with Hyundai Motor Group to explore a collaboration for the national car project based on electric vehicle (EV) technology. 

Liu Gong Indonesia - image source: Equipment Indonesia

LiuGong to build US$317 M electric heavy equipment plant, support Indonesia’s industrial downstreaming

Chinese heavy equipment manufacturer LiuGong Machinery has reaffirmed its long-term commitment to Indonesia through a major investment aimed at building one of the nation’s largest and most advanced heavy equipment manufacturing facilities.

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Indonesia urges auto parts industry diversification for EV transition

The Ministry of Industry is directing automotive component manufacturers to expand into producing parts for other transportation sectors amidst accelerating global shift from conventional cars to electric vehicles (EVs).

Agus Gumiwang Kartasasmita - image source: AION

Minister showcases support for EV growth with locally assembled AION V

Minister of Industry Agus Gumiwang Kartasasmita inspected the AION V, a locally assembled electric vehicle, at the GAC Indonesia booth during the 2025 Gaikindo Indonesia International Auto Show (GIIAS) held at ICE BSD City on July 24, 2025.

Toyota - image source: Toyota

Toyota to build new factory in Japan amid shifting market dynamics

Toyota Motor Corporation has planned to build a new automobile manufacturing plant in one of Japan cities, with operations expected to begin in early 2030. 

Indonesia Business Post

GIIAS 2025 sees record attendance, yet weaker sales amid economic pressure

The 2025 Gaikindo Indonesia International Auto Show (GIIAS) ended with a record-breaking number of visitors but lower sales transactions compared to the previous year.

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Indonesia pushes green mobility with new incentives for commercial vehicle industry

In an effort to revive the national automotive market, which has been under pressure in recent years, the government is ramping up its support for eco-friendly vehicles by providing incentives not only for electric and hybrid cars, but also including the commercial vehicle segment into its list of recipients.

Daimler - image source: Hariyanto

Daimler Indonesia inaugurates Rp500 billion eco-friendly truck factory

PT Daimler Commercial Vehicles Manufacturing Indonesia (DCVMI) inaugurated a new factory worth Rp500 billion (US$30.7 million) in the Delta Silicon 8 Industrial Estate, Bekasi Regency, West Java. 

Indonesia Business Post

Polytron launches first Indonesian-assembled electric cars

Polytron, an electronics arm of Djarum Group, launched two domestically assembled electric cars on Tuesday, May 6, 2025, apparently the first local business group to do so.

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Auto industry faces sales slump in 2025 amid EV transition, weak consumer demand

As 2025 unfolds, Indonesia's automotive industry is facing a series of challenges that have led to a decline in domestic four-wheeled vehicle sales, reflecting broader economic and structural shifts within the sector.

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