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Future Growth Potential of the Automotive Industry due to Sector-Focused Incentives that Cushion Economic Recovery
02-Sep-2021
Asia Pacific
Market Research
PB8D-01-00-00-00
AU02219-AP-MT_25741
In 2020, Indonesia’s automotive total industry volume (TIV) dropped by 48.4%, compared to 2019, with only 532,030 units being sold. The passenger vehicle (PV) segment remained dominant with 73.1% market share. The economic growth for 2020 was the weakest since the 1998 Asian financial crisis. Factors impacted by the COVID-19 pandemic include Gross Domestic Product (GDP) growth, purchasing power, and the automotive industry development.
The largest contribution to passenger car sales was from segments with products priced at IDR 250 million and below, which were mainly the 4X2 and LCGC segments. The 4X2 segment’s slight growth has been supported by new model releases from top-selling brands, which appeals to the less-affected upper middle income group buyers. This is comparable to low cost green car (LCGC) segment that had no new models or variants introduced, and mainly catered to lower middle income groups with spending restrained during the pandemic.
In the commercial vehicle (CV) segment, pick-up maintained sales with sustained demand in the logistics and eCommerce market. Bus demand was limited with strict inter-provincial travel restrictions during the year’s COVID-19 pandemic, and heavy-duty vehicles find staggering decrease due to decline in construction activities.
In 2021, Indonesia’s TIV is projected to improve with 36.3% growth, following slow economic recovery as well as Phase 1 COVID-19 vaccination that is targeted for completion as early as March. Indonesia’s GDP is expected to rebound from (2.1%) growth in 2020 to 5.1% in 2021, contributed by recovery of major trade and manufacturing industries.
Indonesian government is expected to come up with right-on-target stimulus plans for the automotive industry as regulatory aid is needed to bolster purchase in the market. Fiscal policies comprising of customs and import taxes should be considered following neighboring countries implementing protectionism measures to recover their respective domestic economies.
Due to the pandemic, eHailing and rental services have witnessed a staggering decline in demand due to social distancing and work-from-home policies. This trend is expected to continue in 2021 and will gradually improve as economic activities recover from recession.
On-demand delivery service is expected to continue to increase in 2021, accelerated by growth of eCommerce businesses and instant package deliveries. Operators in the shared mobility market are expected to continue to diversify their services within the same platform.
Highlights of Indonesia’s Automotive Industry
Challenges Faced by Indonesia’s Automotive Industry Due to COVID-19
Indonesia’s Automotive Industry in 2020—Actuals vs. Forecast
Indonesia’s Automotive Industry—Historic Sales
Top Predictions for 2021
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on the Automotive Industry
Growth Opportunities Fuel the Growth Pipeline Engine™
Research Scope
Market Segmentation
2020 Global Economic Highlights
The 2020 Global Economy—Actuals vs. Forecast
COVID-19 Impact on World GDP Growth
Global Growth Scenario Analysis—Assumptions
World GDP Growth Under Differing Scenarios
COVID-19 Impact on Key Regions
Top 2021 Global Economic Predictions
2021 Global GDP Growth Snapshot
Advanced Economies—Predictions for 2021
Emerging Economies—Predictions for 2021
2021 Growth Opportunities—Top 3 Opportunities by Region
2021 Regional Trends—GDP Growth, Economic Risks, and Policy Direction
Indonesia—Economic Perspective
Indonesia—Industry Performance
Indonesia—2020 Highlights
Indonesia: Economic Stimulus Packages—COVID-19 Relief
Indonesia: What is Happening?—An Overview of the Omnibus Law
Indonesia: What is Next?—Proposal for Capital City Relocation
Snapshot of Indonesia’s Automotive Market
Automotive Market Breakdown by Vehicle Segments
Leading OEMs and Vehicle Models in Indonesia
Policy Direction
Overview of Policies Related to the Automotive Industry
LCEV Program—Policy Framework
BEV Acceleration Program—Policy Framework
National Energy Policy and Master Plan (RUEN)—Policy Framework
Biofuel Development Road Map—Policy Framework
Emission Standard and Fuel Specification—Policy Framework
Existing Incentives for the Automotive Sector, an Overview
Predictions for 2021—Indonesia’s Automotive Market
Government Regulations on EVs
BEV Acceleration Program (Presidential Decree No. 55/2019)
Specification, Road Map, and Percentage of Local Content (MOI Regulation 27/2020)
Specification, Road Map, and Percentage of Local Content (MOI Regulation 27/2020) (continued)
Specification, Road Map, and Percentage of Local Content (MOI Regulation 27/2020) (continued)
CKD and IKD Schemes (MOI Regulation 28/2020)
Implemented Fiscal Incentives for EVs
EV Type Testing (MOTp Regulation 44/2020)
EV Charging Infrastructure (MEMR Regulation 13/2020)
HEV and EV Market Snapshot
HEV and EV Product Pricing
Charging Infrastructure Snapshot
Charging Operators
Charging Infrastructure Development Plan in Indonesia
Key Predictions for 2021—Indonesia’s HEV and EV Market
Government Regulations
Shared Mobility—Definition
Car-sharing Market Snapshot
Leading Car-sharing Operators
eHailing Market Snapshot
eHailing Operators
Case Study—A Shift from Conventional Transport Services
Predictions for 2021—Indonesia’s Shared Mobility Market
Snapshot of Connected PV Solutions in Indonesia
Case Study—Mazda CX-5 Offers the Most Advanced Connected Mobility Solution
Snapshot of Connected CV Solutions in Indonesia
Predictions for 2021—Indonesia’s Connected Mobility Market
Main 2021 Automotive Market Trends
Prediction 1—PV Segment to see Modest Growth in 2021
Prediction 2—Noteworthy Growth in the EV Segment
Prediction 3—An Apparent Shift in Shared Mobility Providers
Growth Opportunity 1—New Product Development and New Product Launch for Battery Electric Vehicle Ecosystem Participants, 2021
Growth Opportunity 1—New Product Development and New Product Launch for Battery Electric Vehicle Ecosystem Participants, 2021 (continued)
Growth Opportunity 2—Strategic Partnership for EV Charging Operators, 2021
Growth Opportunity 2—Strategic Partnership for EV Charging Operators, 2021 (continued)
Growth Opportunity 3—Competitive Strategy for Battery Electric Vehicle Industry Participants, 2021
Growth Opportunity 3—Competitive Strategy for Battery Electric Vehicle Industry Participants, 2021 (continued)
Conclusions and Future Outlook—Overall Automotive Market
Abbreviations and Acronyms Used
Abbreviations and Acronyms Used (continued)
List of Exhibits
List of Exhibits (continued)
List of Exhibits (continued)
List of Exhibits (continued)
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| Deliverable Type | Market Research |
|---|---|
| No Index | No |
| Podcast | No |
| Author | Farra. Nabila |
| Industries | Automotive |
| WIP Number | PB8D-01-00-00-00 |
| Is Prebook | No |
| GPS Codes | 9673-A6,9800-A6,9AF6-A6 |
Indonesia Automotive Outlook, 2021
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