The Indonesian government also has high hopes for the country’s car exports , particularly since the implementation of the ASEAN Economic Community , which turns the ASEAN region into one single market and production area. The AEC should unlock more opportunities for exporters as it intensifies regional trade. Once technological and regulatory issues have been resolved, up to 15 percent of new cars sold in 2030 could be fully autonomous. Electric starter, a significant innovation in promoting the acceptability of the gasoline-powered automobile.
Others, such as General Motors have come back to Indonesia to tap this lucrative market. However, Japanese car manufacturers remain the dominant players in Indonesia’s car manufacturing industry, particularly the Toyota brand. It is a very difficult challenge for western brands to compete with their Japanese counterparts in Indonesia, known as the backyard of Japanese car manufacturers. Car manufacturers must further differentiate their products/services and change their value proposition from traditional car sales and maintenance to integrated mobility services. We create intelligent sensing and power solutions to boost the race to a more sustainable future.
- Adoption rates will be highest in developed dense cities with strict emission regulations and consumer incentives .
- Our Future Mobility Europe online event brings together more than 1,000 stakeholders to discuss the business models, technologies and trends shaping the future of mobility.
- It is ideal for 3D gesture sensing as well as 2D/3D driver and interior monitoring applications.
- PSA and CK Birla Group have a 50-50% joint venture called PSA AVTEC Powertrain Pvt.
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. Most industry players and experts agree that the four trends will reinforce and accelerate one another, and that the automotive industry is ripe for disruption. Given the widespread understanding that game-changing disruption is already on the horizon, there is still no integrated perspective on how the industry will look in 10 to 15 years as a result of these trends.
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While other industries, such as telecommunications or mobile phones/handsets, have already been disrupted, the automotive industry has seen very little change and consolidation so far. For example, only two new players have appeared on the list of the top-15 automotive original-equipment manufacturers in the last 15 years, compared with ten new players in the handset industry. The speed of adoption will be determined by the interaction of consumer pull and regulatory push, which will vary strongly at the regional and local level.
Sustainability in automotive aftersales
The central bank of Indonesia decided to revise the down payment requirements for the purchase of a car in an attempt to boost credit growth . Per 18 June 2015, those Indonesian consumers who use a loan from a financial institution to purchase a passenger car need to pay a minimum down payment of 25 percent . It is estimated that around 65 percent of all car purchases in Indonesia are made through a loan.
This includes policies on industry and trade, energy, tax, safety standards, the use of technology, and environment. In global role, GAIKINDO is a partner of the automotive industry associations in various countries. This is mainly with associations in the countries where automotive industry becomes the backbone of the economy, and in particular with the principal countries whose products enter the Indonesian automotive market. Diverging markets will open opportunities for new players, which will initially focus on a few selected steps along the value chain and target only specific, economically attractive market segments—and then expand from there. While Tesla, Google, and Apple currently generate significant interest, we believe that they represent just the tip of the iceberg. Many more new players are likely to enter the market, especially cash-rich high-tech companies and start-ups.
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.
Jongkie Sugiarto, Chairman of the Indonesian Automotive Industry Association , said the region east of Jakarta is selected by many car manufacturers for their production base since a decade ago as the area’s infrastructure is good . He added that it has now become difficult to find large-sized land for new factories due to the influx of many businesses over the past years. Currently, this electric motorcycle is in the massive production to produce 50 thousand units and will be in the marketplace in 2018.
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