Indonesia’s Electric Vehicle Market Faces Steep Depreciation, Particularly for Early Models

Jakarta – The Indonesian electric vehicle (EV) market is experiencing significant depreciation, with some models losing over 50% of their value within three to four years of purchase. This trend, particularly affecting early adopters like the Wuling Air EV and Hyundai Ioniq 5, poses a challenge for both current and prospective EV owners.

Rapid Depreciation Rates Outpace Traditional Vehicles

According to Agung Iskandar, Director of OLXmobbi, the depreciation rate for Battery Electric Vehicles (BEVs) in Indonesia is considerably steeper than that of internal combustion engine (ICE) or hybrid vehicles. While ICE and hybrid cars typically depreciate by 10-15% annually, BEVs are experiencing a depreciation rate of 35-60% per year [Source: Inilah.com].

Factors Driving Depreciation

Several factors contribute to this rapid depreciation. The introduction of newer, more affordable EV models is a primary driver. Concerns about battery life and performance over time impact resale values. Government incentives for new electric car purchases also contribute to lower prices for used models [Source: Inilah.com].

Specific Model Examples

Agung Iskandar cited the Wuling Air EV and Hyundai Ioniq 5 as examples of models experiencing substantial depreciation. A Hyundai Ioniq 5 purchased in 2022 for IDR 800 million can now be found for around IDR 350 million, representing a depreciation of over 50% [Source: Inilah.com]. The Wuling Air EV is also experiencing similar price reductions due to aggressive discount policies on new EVs.

Limited Used EV Market

The used EV market in Indonesia remains relatively small. OLX reported that used EV transactions accounted for only 1% of total transactions on their platform last year [Source: Inilah.com]. This limited demand is further compounded by a lack of financing options specifically tailored for used EVs.

Current Market Availability and Pricing (March 7, 2026)

As of March 7, 2026, there are 52 Wuling EV models available for resale in Indonesia, with prices ranging from IDR 105 million to IDR 280 million [Source: Zigwheels Indonesia]. Examples include:

• 2024 Wuling Air EV Lite: IDR 175 million
• 2023 Wuling Air EV Long Range: IDR 185 million
• 2023 Wuling Air EV Lite 200: IDR 170 million
• 2023 Wuling Air EV Pro 300: IDR 128 million

Looking Ahead

The rapid depreciation of EVs in Indonesia presents a challenge for the market’s long-term growth. Addressing concerns about battery life, increasing consumer confidence in the resale value of EVs, and developing financing options for used EVs will be crucial to fostering a more sustainable and robust EV market in the country.