Flooded with Chinese Electric Vehicles, Indonesia's Automotive Industry at Risk

The electric vehicle market in Indonesia is currently being inundated with imported products, particularly from China. This dominance is seen as potentially eroding the domestic automotive industry.

Data shows that more than 60% of electrified products in Indonesia originate from China. This dominance presents a serious challenge to the local industry.

“Regarding electrification in Indonesia, the position is dominated by electrified goods. So over 60%, our electrified products are mostly from China,” said Agus Purwadi, Researcher at NCSTT ITB, during the TMMIN Media Workshop on Tuesday (14/4/2026).

This phenomenon is not unique to Indonesia but is also occurring in other countries with automotive industry bases, such as neighbouring Thailand.

“Thailand is also more dominated by China. And Thailand has already faced problems in its automotive industry. Many factories are starting to close, so Thailand’s growth has also declined,” he stated.

The influx of new products should ideally expand the market, but instead, it is leading to cannibalisation of existing markets. This situation is also influenced by consumer purchasing power that has not fully recovered.

“These new products are not adding to the market but rather eroding it. Eroding the market, even though our capacity is high,” he explained.

On the other hand, countries like India and Vietnam have managed to build strong local production bases. Both rely on measured policies and consistent industrialisation strategies.

“India and Vietnam’s electrification is starting to succeed in building internally because they have policies and measured implementation,” Agus revealed.

Indonesia needs to urgently find ways to drive market growth while protecting the domestic industry.

“So this is what we should find ways to trigger the market,” he said.