Fuel Price Hike Does Not Immediately Boost Electric Vehicles, Says BYD

Rising fuel prices are often assumed to trigger a surge in demand for electric vehicles. However, this is not necessarily the case directly in Indonesia’s automotive market. Although there is a trend of increasing electric vehicle sales, it cannot yet be concluded that this is caused by the fuel price increase. “Looking at the graph, there was a significant increase in the first quarter, but we cannot yet assume that it is due to fuel dynamics,” said Head of PR & Government Relations at BYD Indonesia, Luther T. Panjaitan, quoted on Thursday (23/4/2026). The growing interest in electric vehicles has been gradual, even before the fuel price fluctuations. In other words, this trend is more structural than situational. “The trend is not just from the recent fuel shortage issue; EV sales have been rising anyway,” he said. From BYD’s perspective, the growth in electric vehicles is driven by various factors, from environmental awareness to maturing technology. Therefore, the company chooses not to speculate on a single factor like fuel. “So we don’t want to speculate that this is due to fuel shortage dynamics,” said Luther. On the other hand, the company continues to monitor the impact of fuel price increases on the overall economy. Economic stability is seen as an important factor for the sustainability of the automotive industry. “But we are more focused on hoping that this does not have a significant impact on the overall economy,” he said. He emphasised that an economic slowdown due to rising energy costs could pose a challenge to all sectors, including the growing electric vehicle industry. “Meaning we want the industry to keep developing, EVs to develop, and the automotive sector as a whole to develop,” said Luther. According to him, a balance between energy policies and industrial growth needs to be maintained. This is important so that the transition to electric vehicles is not hindered by economic pressures. Additionally, BYD hopes that issues related to fuel supply and prices can be resolved soon to avoid a domino effect on people’s purchasing power. “Resolving the fuel issue is also something we hope for,” he said. Furthermore, Luther views government policy support as key to maintaining the momentum of electric vehicle growth in Indonesia. “Meaning the economic wheels return to normal or even better if certain stimuli occur, like the incentives we’re discussing now, especially to support it.”