Indonesian EV Sales Projected to Surpass Conventional Vehicles
Ang Andri Pribadi, Deputy President Director of PT Selamat Sempurna Tbk, stated that both electric vehicles (EV) and conventional petrol-based vehicles will continue to grow alongside the increasing global population. He noted that research suggests EV sales will surpass conventional vehicle sales by 2030.
“EV sales will be larger than conventional vehicles by 2030. By 2035, the EV population could even exceed the population of conventional vehicles,” Ang explained during an event titled “Building a Resilient Automotive Ecosystem Beyond EV Amid Global Supply Chain Shift,” organised by CNBC Indonesia in collaboration with DBS.
Consequently, Ang mentioned that Selamat Sempurna has taken anticipatory measures. One such strategy involves shifting focus from passenger cars towards healthy equipment and commercial filters, such as those used in gas and aircraft.
From a banking perspective, DBS Indonesia explained its approach to assessing financing risks for automotive companies that maintain significant investments in internal combustion engine technology amidst the industry’s shift towards electric vehicles.
Ello Hanson, Executive Director, Head of Large Corporates & ESG Lead Institutional Banking Group at DBS Indonesia, stated that the bank has mapped vehicle components based on their usage, distinguishing between those exclusive to conventional vehicles, those for EVs, and components used in both drivetrains.
“Our focus is on everything used in both conventional and EV vehicles—for example, tyre components, electrical components, air conditioning, audio, and braking systems. These are components that will continue to be used, whether in conventional cars or EVs,” Ello explained.
Ello emphasised that companies concentrated solely on the conventional vehicle segment are not automatically deemed to have no prospects, although DBS will apply extra caution in financing that segment. He noted that the EV market remains vast and is expected to persist for a long time, as mass consumption patterns have not yet fully transitioned to EVs.
“We are in a period of mass consumption. Conventional vehicles and EVs will continue to coexist for a long time,” he said. He added that the conventional vehicle market is likely to undergo consolidation in the future, where only the strongest players will survive.
Rather than merely restricting financing, DBS Indonesia is reportedly encouraging companies still focused on petrol-based vehicles to begin adapting. The bank is utilising its component mapping and re-setter type strategies as a basis for determining its future financing direction.