news

indonesian electric vehicle industry observation: we have mines at home, and we are crossing the river by following china’s development path

2024-10-03

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

indonesia is the largest economy in southeast asia, with the largest population and largest area, and its automobile industry also has a relatively large scale. according to data from the indonesian motor vehicle industry association, indonesia's motor vehicle production ranks 11th in the world, domestic sales rank 14th in the world, and it exports to 93 countries and regions around the world.

so far, indonesia has more than 20 automobile companies, with production reaching 1.4 million vehicles last year, making it the second largest automobile producer in southeast asia after thailand; indonesian new car sales reached 76,304 units in august 2024, a year-on-year decrease of 14.2% , but it is still one of the important automobile producing countries in southeast asia.

new energy vehicles are becoming the biggest highlight of the indonesian automobile industry. data shows that indonesian pure electric vehicle sales reached 23,330 units from january to august 2024, which is more than twice the same period last year, and the growth rate is quite alarming. and behind all this, there are chinese manufacturers.

bydit only entered the indonesian market in june this year, but a total of 6,461 electric vehicles have been delivered. the main models aresealas well asyuan plus

wuling motorsthere is also a good performance,wuling bingoa total of 3,876 units were delivered from january to august, and wuling air also sold 1,655 units;chery automobilewe also made gains in the indonesian electric vehicle market, with a total of 3,485 vehicles delivered from january to august.ou mengdaE5。

this market structure is relatively close to the thai market. their traditional fuel vehicle market is dominated by japanese manufacturers, while the electric vehicle market is occupied by chinese manufacturers and is in the process of rapid development.

there are very few countries in the world that truly have a complete automobile industry chain. indonesia, like thailand, is a country with a certain automobile industry foundation. however, due to various reasons, it has always lacked upward industrial momentum.

indonesia's electric vehicle industry has various problems such as insufficient infrastructure construction, poor industrial chain supporting capabilities, dependence on imports of key components, weak performance of domestic independent brands, and low independent research and development capabilities.

under normal circumstances, to solve such problems, countries such as thailand, hungary, and mexico adopt measures to attract investment and attract large-scale new energy vehicle manufacturers from other countries to invest and set up factories through various preferential policies, thereby obtaining industrial chain transfer and technology diffusion. .

indonesia naturally has this idea, and compared with other countries, indonesia has a unique advantage, that is, it "has mines at home."

the key to electric vehicles lies in power batteries, and the key to power batteries lies in upstream raw materials such as nickel, cobalt, and manganese. these raw materials are relatively scarce in the three major electric vehicle centers of china, the united states, and the european union, but indonesia is different. it is the world's no. as a major nickel producer and the second largest cobalt producer, indonesia's resource advantages have given it influence on the global electric vehicle market.

the indonesian government’s approach is to use the nickel and cobalt resources in its hands as a basis. on the one hand, it restricts or prohibits the export of these key raw materials. on the other hand, it expands opening up and requires industrial chain giants from other countries to invest and set up factories in indonesia, trying to use this as a basis. starting point to create a complete power battery industry chain.

so far, german chemical giant basf, french nickel giant eramet, south korean battery giant lg, chinese battery giant catl, and global nickel giant tsingshan holdings have all entered the indonesian nickel mining industry.

not only that, the indonesian government has also positioned the electric vehicle industry as one of 18 pioneer industries. according to the indonesian government's plan, it will have an annual production capacity of 500,000 electric vehicles in 2030, there will be at least 2.2 million electric vehicles in the country, and only electric vehicles will be sold in 2050.

in addition, the indonesian government also stipulates that new energy vehicles investing in and setting up factories in indonesia must use more than 40% of their products to use indonesian local parts before 2026.

in order to promote the development of electric vehicles, the indonesian government also decided to strengthen infrastructure construction. the development plan for supporting infrastructure for electric vehicles has been written into indonesia's "national medium-term development plan 2020-2024", and a network of charging stations will be planned and constructed nationwide. so far, indonesia's charging infrastructure is still relatively backward, and many users are forced to choose non-plug-in hybrid vehicles led by japanese manufacturers.

due to china's strong position in the global new energy market, foreign investors in the indonesian market are mainly chinese manufacturers. up to now, those entering the indonesian electric vehicle market include wuling, thalys, chery, faw, byd,nezhagreat wallgac aianother oems include power battery manufacturers such as catl, everview lithium energy, and guoxuan high-tech, as well as raw material manufacturers such as tsingshan holdings, zhongwei holdings, and beterui.

judging from the current situation, indonesia is relatively stable in the development of electric vehicles. at this stage, it is mainly focused on introducing foreign manufacturers, acquiring technology diffusion, completing the industrial chain, and improving infrastructure. in the future, it is possible to cultivate local new energy vehicles. brand, this idea, is actually relatively close to china. in fact, indonesia has indeed followed china's successful path in all aspects and is expected to become another model country for the success of the chinese model in southeast asia in the future.