Still, there are no major concerns about this situation as domestic car demand has ample room for growth in the decades to come with Indonesia’s per capita car ownership still at a very low level. The GESITS electric motorcycle is the first electric motorcycle assembled by ITS. GESITS is the product of collaborative research between ITS and PT Garansindo, an electric vehicle industry.
Due to varying update cycles, statistics can display more up-to-date data than referenced in the text. En.bab.la needs to review the security of your connection before proceeding. Selden patent, which the association claimed as a basic patent on the gasoline-powered car.
- Dongfeng Motor holds a 12.23% stake and a 19.94% exercisable voting rights in PSA Groupe.
- Reskill your existing workforce and elevate the employee experience to attract and retain the most skilled software and manufacturing talent.
- The new Armv9 architecture delivers greater performance, enhanced security and DSP and ML capabilities.
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To overtake Thailand as the biggest car manufacturer in the ASEAN region will, however, require major efforts and breakthroughs. Currently, Indonesia is primarily dependent on foreign direct investment, particularly from Japan, for the establishment of onshore car manufacturing facilities. The country also needs to develop car component industries that support the car manufacturing industry. Continue to find the latest innovations at ITS in developing the automotive world of the future. Reprove engineering process to develop the automotive component for local production.
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Solutions for Passenger Cars
Driven by shared mobility, connectivity services, and feature upgrades, new business models could expand automotive revenue pools by about 30 percent, adding up to $1.5 trillion. While Indonesia has a well developed MPV and SUV manufacturing industry, the nation’s sedan industry is underdeveloped. This is a true missed opportunity in terms of export performance because about 80 percent of the world’s drivers use a sedan vehicle. The key reason why Indonesia has not developed a sedan industry is because the government’s tax system does not encourage the production and export of the sedan vehicle.
The luxury goods tax on the sedan is 30 percent, while the tax on the MPV is set at 10 percent. This causes the high sedan price and in order to encourage demand for the sedan its price needs to become more competitive. In the United States almost all of the producers were assemblers who put together components and parts that were manufactured by separate firms. The assembly technique also lent itself to an advantageous method of financing. European automotive firms of this period tended to be more self-sufficient. Develop auxiliary equipment for the production process to improve the quality and the quantity of the local automotive industry.