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.

• 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.
• This will require a sophisticated degree of scenario planning and agility to identify and scale new attractive business models.
• 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.
• Learn how suppliers adapt and innovate in the new mobility and automotive ecosystem.

The LCGC has become a very popular vehicle in Indonesia and now contributes nearly 25 percent to total domestic car sales. Considering the nation’s per capita GDP is still below USD $4,000, affordability is generally the most important factor for Indonesian consumers when buying a car, and this would explain consumers’ shift to the LCGC. For example, city car sales in Indonesia have plunged dramatically since the launch of the LCGC. Also the multipurpose vehicle , which – by far – is the most popular vehicle in Indonesia, felt the impact of the arrival of the LCGC. But the MPV’s dominant role in the nation’s automotive sector will persist.

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BMW iX benchmark study: how functions and features contribute to a high level of driving excitement and efficiency

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.

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Application vendors are deterred by the cost and challenge of developing and supporting multiple proprietary interfaces to address the necessary range of vehicles. Several technology trends are driving a significant increase in the ability to generate and share a wide range of relevant information. I have been working in automotive consulting for 14 years, with experience in Europe and China. Currently based in Munich, I am responsible for the global automotive consulting business and part of the global leadership team at Capgemini Invent. Jean-Marie Lapeyre works with automotive clients to develop and launch actionable technology strategies to help them succeed in a data- and software-driven world. Regulatory and customer expectations to cut emissions, reduce ownership costs and provide smarter services; all of which require new ideas and solutions which go far beyond drivetrain and vehicle optimization.