The New Era of EV Competition in Indonesia: BEVs Getting Hotter and More Affordable

Indonesia’s battery electric vehicle (BEV) market is entering one of its most competitive phases yet. With surging sales and increasingly accessible prices, new players are racing to win over consumers in this rapidly expanding segment.

MARKET TALK

11/12/20252 min read

black and silver car steering wheel
black and silver car steering wheel

In recent years, Indonesia has emerged as one of the most promising electric vehicle markets in Southeast Asia. Advancements in battery technology, strong government support, and shifting consumer behavior have transformed EVs from luxury symbols into practical, forward-looking transportation choices that define the future of Indonesia’s automotive industry.

According to data from the Association of Indonesia Automotive Industries (GAIKINDO), battery electric vehicle (BEV) sales reached 55,225 units between January and September 2025, surpassing the 43,188 units sold throughout all of 2024. This surge pushed BEVs to capture around 9.8%–10% of total national car sales — a record milestone for Indonesia.

Predicts that this growth trend will continue into next year. He identified three key drivers behind the booming EV market:

  1. Strong fiscal incentives and continued government support.

  2. Increasingly competitive pricing, with some models now available for around Rp 200 million.

  3. Rising environmental awareness among urban consumers.

“Some EV models in the Rp 300 million range are now even cheaper than conventional gasoline cars. That’s a major psychological shift for the market,” said Yannes. “However, sustained growth still depends on expanding charging infrastructure and improving after-sales service readiness.”

The aggressive entry of new global EV brands — from China, South Korea, and Europe — has reshaped Indonesia’s automotive landscape into one of intense competition. This dynamic shift could disrupt the long-standing dominance of internal combustion engine (ICE) giants that have ruled the market for decades.

For consumers, this is good news. They now have wider choices, better technology, and more affordable options — making electric vehicles a realistic and attractive alternative for the middle-income segment.

Indonesia is standing at a crucial turning point in its automotive transformation.
Is your business ready to adapt to the electric revolution?

Satra Sinar Abadi Group is here to guide you through Indonesia’s EV landscape — from regulations and incentives to investment opportunities and market insights.

Contact us today to get tailored consultation and strategy designed for success in the new era of sustainable mobility.

With pro-investment policies, expanding infrastructure, and a growing environmental mindset among consumers, Indonesia is on track to become one of the fastest-growing EV markets in the region.
Soon, electric vehicles will no longer be the exception — they will be the new face of Indonesia’s roads.

Satra Sinar Abadi Group