Consumer mobility behavior is changing, leading to up to one out of ten cars sold in 2030 potentially being a shared vehicle and the subsequent rise of a market for fit-for-purpose mobility solutions. After effectively ending the economic slowdown in 2016, the Indonesian economy is expected to show accelerating economic in the years ahead, something that boosts people’s purchasing power as well as consumer confidence. One of the key reasons that explains why Indonesia’s economy ended the slowdown in 2016 was because of improving commodity prices (rising commodity prices tend to boost car sales on the resource-rich islands of Kalimantan and Sumatra). Due to the easier monetary policy and the end of the economic slowdown in 2016 (GDP growth accelerated to 5.02 percent y/y), Indonesian car sales finally rebounded in 2016.

• Both companies also have a joint venture called Beijing Foton Daimler Automobile.
• In exchange, the LCGCs are exempted from luxury goods tax, which allows manufacturers and retailers to set cheaper prices.
• SAE’s broad array of technical, historical, and statistical publications are distributed to customers in more than 65 countries annually.
• As such, from a macroeconomic and monetary perspective there is a good context in Indonesia, one that should encourage rising car sales in the years ahead.

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Automotive Center

Other issues that limit car exports are concerns about safety standards and technology. When these LCGC cars were introduced they, generally, had a price tag of around IDR 100 million (approx. USD $7,500) hence being attractive for the country’s large and expanding middle class segment. By early the average price of the LCGC had risen to around IDR 140 million (approx. USD $10,500) per vehicle. With the implementation of the ASEAN Economic Community at the start of 2016, the Indonesian government also aims to make Indonesia the regional hub for the production of LCGCs.

Future Mobility Europe

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This will require a sophisticated degree of scenario planning and agility to identify and scale new attractive business models. In 2030, the share of electrified vehicles could range from 10 percent to 50 percent of new-vehicle sales. Adoption rates will be highest in developed dense cities with strict emission regulations and consumer incentives .

The Indonesian automobile market was dominated by Japanese car brands, and most of these brands, such as Toyota, Isuzu and Daihatsu, were solely distributed and/or imported by PT. Toyota was the leading passenger vehicle brand in Indonesia with car sales over 295 thousand units in 2021. There was only one non-Japanese car brand among the best-selling car manufacturers in Indonesia. The Chinese manufacturer Wuling launched their first car in early 2017 and made it in the top ten brands of cars sold with about 25.5 thousand vehicles sold in 2021. Top models of BMW and Audi cars are shipped as finished automobiles (CBU – Completely Built Up), while other models are assembled on site. SAP can help you start or enhance your digital transformation – no matter where you are in your journey.