Middle East Conflict: Automotive Industry Shifts to Electric Vehicles

JAKARTA — Global oil prices face potential increases should the conflict in the Middle East region not subside promptly. These conditions are predicted to have far-reaching impacts across various sectors, including the automotive industry.

Chief Executive Officer of PT Sokonindo Automobile, Alexander Barus, stated that rising oil prices could cause transportation and logistics costs to increase correspondingly. He believes this situation could actually serve as an opportunity for electric vehicles to attract greater consumer interest.

“From my perspective, there will be significant shifts toward electric cars. Because our electricity is sourced largely from coal, which contains no oil element. Once charged, the vehicle can operate,” Barus said.

According to him, electric vehicles’ dependence on oil is relatively minimal compared with petrol or diesel-powered vehicles. In line with this assessment, Director of Sales at PT Sokonindo Automobile Cing Hok Rifin stated that rising oil prices could directly impact fuel prices.

“So it can be said that fuel prices will be affected. We hope many countries will also be unable to continue subsidising premium fuel indefinitely,” Rifin said. He believes this situation could have a positive impact on electric vehicle sales.

“Possibly our sales could increase twofold or more from the rise in oil prices,” Rifin added.