Transition Period from ICE to EV Prompts Japanese Car Dealers to Switch Logos
Jakarta (ANTARA) - Changes in the Indonesian automotive industry landscape are becoming evident with the rising adoption of electric vehicles, prompting dealers of Japanese brands to alter their logos to Chinese brands that offer more competitive value in terms of technology and pricing.
This was acknowledged by the General Secretary of HIPMI Automotive, Hasstriansyah, who noted that the decline of Japanese brand dealers is inseparable from the momentum of transitioning from conventional fuel vehicles to battery electric vehicles (BEVs).
“Models, modern features, quality, and prices offered by Chinese brands are currently very competitive. This is what is causing many dealers to switch or become multi-brand,” said Hasstriansyah when confirmed by ANTARA from Jakarta on Wednesday.
According to him, the use of vehicles that are more environmentally friendly and have sufficiently high efficiency levels is already being felt by urban communities.
Not only that, various regulations that conventional vehicles do not receive are also forcing consumers to switch to BEVs to cross odd-even zones in Jakarta.
Innovations highlighted by Chinese automotive manufacturers are also very attractive to Indonesian consumers. The sophistication offered through features and technology becomes a unique draw.
“The future trend in EV technology will increasingly be felt by society. Battery capacity is already better, travel distance is further. The charging process is now faster, in minutes, and exemption from odd-even rules specifically in Jabodetabek makes people choose to switch to EVs,” he said.
He added that the aggressive expansion of Chinese brands in Indonesia is driven by long-term investments, substantial promotional budgets, and more attractive margin schemes for dealers. This is reinforced by government policies that support targets for reducing carbon emissions.
The value-for-money approach is key, where consumers are offered more complete features and technology at competitive prices. This situation, according to him, needs to be taken seriously by Japanese and Korean manufacturers.
“Japanese and Korean principals must realise this change. They cannot just rely on brand strength and old market perceptions,” he said.
The main advantage of Japanese brands currently lies in resale value and long-built consumer trust.
In contrast, Chinese brands are still facing challenges in proving product durability in the long term, especially after five to ten years of use.
“This is still a gap that Japanese brands have. But they cannot survive on that alone,” he stated.
It is no wonder that loyalty among Indonesian automotive consumers is still dominated by Japanese products. According to data shared by the Indonesian Automotive Industry Association (Gaikindo), Japanese manufacturers still hold the top sales dominance.
Based on Gaikindo’s retail data, total vehicle sales from January to March 2024 reached 211,905 units in the first quarter or the first three months of this year.
The top position is still held by Toyota with total sales of 64,416 units and a market share of 30.4 percent. Toyota’s monthly sales were recorded at 22,066 units in January, 22,812 units in February, and 19,538 units in March.
In second place, its sister company under the same umbrella, Daihatsu, recorded 34,653 units with a 16.4 percent share, followed by Suzuki in third place with 19,026 units (9 percent).
Meanwhile, contributions from Chinese sales in the national automotive market rank 6th and 7th for BYD and Jaecoo brands. BYD manufacturer successfully distributed vehicles to consumers amounting to 10,265 units and a 4.8 percent share, and Jaecoo 7,927 units (3.7 percent).