Rise in Electric Vehicle Trend Erodes ICE Car Sales

JAKARTA – The development of electric vehicles is beginning to have a tangible impact on the competitive landscape of the national automotive industry. Sales of internal combustion engine (ICE) cars are now slowly being eroded, in line with the surge in electric vehicle adoption. Chief Executive Officer of PT Indomobil National Distributor, Tan Kim Piauw, stated that the electric vehicle trend continues to show significant increases over time. He explained that the contribution of electric vehicles to the total automotive market has experienced a sharp surge in just one year. “So, as I mentioned earlier, last year in Q1 it was still 8% (EV contribution). This year in Q1, it’s already nearly 15%,” said Tan. Based on Gaikindo records, total wholesale car sales in the first quarter of 2024 reached 209,021 units, growing slightly by 1.69% compared to the same period last year. Meanwhile, retail sales were recorded at 211,905 units. Although overall market growth is relatively moderate, there has been a significant shift in the composition of sales. Amid this change, major brands such as Toyota, Daihatsu, and Mitsubishi Motors still dominate the overall market. However, pressure from the electric vehicle segment is expected to intensify in the coming years. As a result, ICE cars, which have long been the backbone of the industry, are beginning to experience a shift. If this trend continues, it is not impossible that the automotive market dominance map in Indonesia will change, with electric vehicles becoming the main players and conventional cars gradually being replaced.