automotive

The Dynamics Of The Indonesian Automotive Industry In 2024: From Chinese Brands To The Departure Of Peugeot

Throughout 2024, the domestic automotive industry has witnessed several significant developments that have invigorated the Indonesian market, ranging from the arrival of brands from China to the exit of European brands from the Indonesian landscape. Not only have numerous companies entered the competitive automotive sector in Indonesia, but there have also been several brands that have unfortunately had to withdraw from the market. 

Peugeot's Exit from Indonesia 

The news of the French automotive manufacturer Peugeot's departure from Indonesia stirred considerable discussion within the local automotive industry. This unexpected exit occurred without prior warning, catching many by surprise. This decision was driven by Stellantis, the parent company of Peugeot, as part of their strategic growth plan within the ASEAN automotive market. Peugeot officially exited Indonesia on May 2, 2024. Nevertheless, the company has committed to providing spare parts and repair facilities for Peugeot vehicle owners in the country. 

Chinese Brands 

In 2024, Indonesia has opened its doors wide to Chinese automotive manufacturers, allowing them to compete with established brands in the Indonesian market.bChina is well-known for its extensive array of automotive brands. This year, at least six brands have entered the Indonesian automotive market, offering a variety of choices to local consumers.bAmong these brands are BAIC, which entered the market in April with two models, the X55-II and BJ40 Plus, and AION, which introduced its electric vehicle, the Aion Y Plus. In addition to these two brands, other Chinese manufacturers have followed suit, including Jetoru, which showcased the X70 Plus and Dashing at the Gaikindo Indonesia International Auto Show (GIIAS). Lastly, Maxus, operating under PT Indomobil Energi Baru, a subsidiary of the renowned Indomobil Group, has also made its presence felt in the market. Several other brands have also entered the Indonesian market, including Zeekr with their luxury electric vehicles, the Zeekr X and Zeekr 009, as well as Aletra with its electric model, the L8. 

Jeep under Indomobil 

After being managed by various Authorized Dealers in Indonesia, Jeep has now transitioned away from PT DAS Indonesia Motor and is now part of the Indomobil Group.  By the end of this year, Jeep will officially be under the management of Indomobil Group, aiming to enhance competition in the adventure vehicle segment of the Indonesian automotive market through various innovative strategies. 

Honda-Nissan Collaboration 

By the end of 2024, Honda and Nissan are reported to be in discussions to combine their strengths in order to effectively compete and deliver appealing future vehicles to consumers. Through this collaboration, they believe that leveraging the capabilities of both companies will enable them to produce vehicles that are highly anticipated by the public. This initiative aligns with Honda's ambitious goal of introducing a range of electrified vehicles by the year 2040. 

Hybrid Incentives 

The government has officially announced incentives for hybrid vehicles at the end of the year, although the implementation of this initiative will not take place until early 2025, with a proposed incentive of 3 percent through the luxury goods sales tax. Previously, tax incentives were primarily focused on fully electric vehicles (battery electric vehicles/BEV). Thanks to the efforts of various stakeholders, including the Indonesian Automotive Industry Association (Gaikindo) and the Ministry of Industry, the government has finally approved these incentives. 

Tag: Automotive Industry In 2024 Peugeot