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Korean, Chinese carmakers chip away at Japanese dominance in RI market
Japanese giants such as Toyota and Suzuki have responded by introducing hybrid versions of their popular cars, a move that has been fruitful so far.
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PT Hyundai Motors Indonesia launches the Hyundai IONIQ 5 on March 31, 2022. (Hyundai Motor Indonesia/Public Relation team)
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outh Korean and Chinese car manufacturers have been carving out territory in Indonesia’s Japanese-dominated automotive market in recent years, as they capitalize on the government’s push for a transition to electric vehicles (EVs).
But Japanese brands will likely remain dominant for some time yet, analysts say, as they offer their vehicles at far lower prices than their competitors’ comparable EVs and Indonesia’s EV drive has been hampered by a lack of charging infrastructure, among other problems.
South Korean automakers commanded 3.76 percent of the Indonesian market in the first 10 months of the year, up from 1.25 percent in 2013, while Chinese car manufacturers saw their share increase from 0.09 percent to 3.22 percent over the same period, data from the Association of Indonesian Automotive Manufacturers (Gaikindo) shows.
Meanwhile, Japanese car manufacturers’ market share slid slightly to 91.65 percent from 95.43 percent over the same period, the same data shows.
Analysts say EV purchases contributed to the shift, with South Korean carmaker Hyundai's Ioniq 5 model the most popular electric car in the country, followed by Chinese carmaker Wuling’s Air EV.
The trend may continue as both countries invest further in Indonesia. Chinese state-owned car manufacturer SAIC Motor Corp, for instance, has invested some Rp 10 trillion to build factories that could produce cars for the Wuling and MG brands.
Hyundai has also started construction on a new EV battery factory in Indonesia that is expected to commence production next year.
