Jakarta –
The Indonesian automotive market has been enlivened by the arrival of electric vehicles with cheap prices. With capital of IDR 200 million, consumers can get an electric car. In fact, in the past, low cost green cars (LCGC) were the favorite. Now, the LCGC market is battered.
The latest data shows that car sales figures in this segment will decline sharply throughout 2025 compared to the previous year.
“If we talk about the cheap and environmentally friendly car segment or LCGC, this will also experience the same pressure as LCGC wholesale sales in 2025 will reach 122,686 units, down 30.6% (compared to) the previous year and the government in this case will of course continue to pay attention to the recovery of the LCGC market through providing effective fiscal incentives,” said Minister of Industry Agus Gumiwang at the 2026 Indonesia International Motor Show (IIMS).
SCROLL TO CONTINUE WITH CONTENT
Based on wholesale data (distribution from factories to dealers) released by Gaikindo, LCGC will only distribute 122,686 units throughout 2025. In fact, in the first quarter of 2025, this cheap car was successful with an average delivery of more than 12 thousand units per month. However, entering the second quarter until the end of the year, distribution dropped to only 8-9 thousand units.
Meanwhile, retail sales data (sales from dealers to consumers) shows that LCGC sales only reached 130,799 units. This score is down compared to the acquisition in 2024 which reached 178,726 units.
Chairman I of Gaikindo, Jongkie Sugiarto, said that the presence of cheap electric cars is a challenge for the LCGC segment.
“Our LCGC is damaged, down to 37 percent. Because now for IDR 200 million people can get an electric car with a good design and complete features,” Jongkie was quoted as saying CNBC Indonesia.
According to Jongkie, the cheap vehicle segment still has great potential in Indonesia. A technological shift to electrified vehicles is inevitable.
“People now see choices. If the price difference is small but the technology is more advanced, of course they will switch,” said Jongkie.
Watch DetikSore Live:
(rgr/dry)
date:2026-02-12 08:04:00