This is an extract from a recent market report “Electric Vehicle Market in Indonesia” published by The International Council on Clean Transportation (ICCT).

Electric vehicle (EV) sales in Indonesia have experienced remarkable growth over the past few quarters. From fewer than 150 units sold in 2020, EV sales have surged in recent years, particularly during the first and second quarters (Q1 and Q2) of 2025. Quarterly sales reached approximately 22,000 units in Q2 2025. EV uptake has been concentrated in the passenger car segment; in contrast, light commercial vehicles (LCVs) and heavy-duty vehicles (HDVs) have shown minimal electric model penetration to date. In the motorcycle segment, electric sales peaked during the government subsidy period (2023–2024) but declined sharply once the subsidies ended, highlighting the market’s sensitivity to policy support.

Electric Vehicle Market Size

On average, passenger vehicles accounted for 76% of newly registered vehicles; 16% were LCVs, and 8% were HDVs. Japanese original equipment manufacturers (OEMs) continued to dominate the overall vehicle market, comprising nearly three quarters of total sales from 2020 through the first half (H1) of 2025. The Toyota Group led with a 54.2% market share over this period, followed by Honda (11.9%) and Renault-Nissan-Mitsubishi (10%). However, the market showed signs of diversification. Korean OEMs, with brands such Hyundai and Kia, gained a greater share in the Indonesian market; Chinese OEMs also made notable inroads, including by brands that focus solely on EVs, such as BYD.

Passenger Cars: Battery Electric Vehicles

In Q2 2025, EV market penetration— including both battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs)—surged to 15.2% of total passenger car sales, up from 10.1% in Q1 2025. From negligible EV sales in 2020 and 2021, the market began to accelerate in 2022, likely due to government policies—such as the introduction of a purchase subsidy in 2023—and expanded model offerings. Quarterly sales volumes increased substantially starting in 2024 and reached approximately 18,000 units in Q1 2025 and nearly 22,000 units in Q2 2025—a 40% quarter-over-quarter growth rate. By Q2 2025, Indonesia’s total EV stock exceeded 100,000 units.

Among the more than 20 OEMs in the Indonesian EV market, seven were EV-only manufacturers: Tesla, Hozon, Chongqing Sokon Industry Group, BYD Auto, VinFast, Guangzhou Automobile Group, and Geely Automobile. There appeared to be no direct correlation between market tenure and market share. Chinese manufacturers dominated the Indonesian EV market, with two companies accounting for over 60% of all BEV sales from Q1 2020 through Q2 2025: Shanghai Automotive Industry Corporation (SAIC) led with a 31.6% share during this period, closely followed by BYD Auto at 29.7%. The remaining market showed considerable fragmentation. Hyundai-KIA Automotive held a 11.8% market share, while Vietnamese manufacturer VinFast held 8.8%. Other Chinese brands in the EV market included Chery Automotive with an 8.1% market share and GAC with 3.3%. The remaining share was distributed among numerous smaller players.

Passenger Cars: Hybrid and Plug-In Hybrid Vehicles

Although there were no government subsidies for hybrid electric vehicles (HEVs), HEV sales experienced particularly strong growth beginning in Q4 2022, surpassing BEV sales from Q1 2023 to Q2 2024. BEV sales have since outpaced HEV sales, likely reflecting the combined impact of changes favorable to BEVs, such as new government incentives, improved charging infrastructure, and expanded model availability. From Q1 to Q2 2025, PHEVs represented the market’s strongest growth trajectory with a 1,364% quarterly increase, albeit from a small base. Distinct substitution patterns emerged across different vehicle segments. While BEVs primarily replaced gasoline-powered vehicles in the LDV segment, HEVs—which are powered by gasoline—emerged as the preferred replacement for diesel vehicles. As an example of the substitution of diesel vehicles with HEVs, Toyota discontinued the diesel variant of its popular Innova 7-seater in mid-2022, coinciding with the implementation of Euro IV emission standards for diesel vehicles, replacing it with the gasoline-powered Innova HEV.

Passenger Cars: Battery Chemistry and Charger Type

Between 2020 and mid-2025, lithium nickel manganese cobalt oxide (NMC) batteries were used in 55.1% of all available models (not weighted by sales), while lithium iron phosphate (LFP) batteries were used in 31.9% of models. These two chemistries each have distinct trade-offs: NMC batteries offer higher energy density—enabling longer driving ranges—but come at a premium price. By contrast, LFP batteries are more cost effective due to abundant raw materials, pose lower safety risks due to reduced overheating tendencies, and have longer lifespans; however, they have lower energy densities and reduced driving ranges.

The other common battery chemistries among passenger cars sold in Indonesia, specifically lithium nickel cobalt aluminum oxide (NCA) batteries and lithium titanate oxide (LTO) batteries, made up about 11% of the market combined. For fast charging compatibility, the Combined Charging System (CCS) standard dominated, with 87.7% adoption among available models. This high prevalence can be attributed to broad manufacturer support and unified standardization across major markets, including Europe and North America. Other top-ranking fast charger types were guóbiāo tuījiàn (GB/T), CHArge de Move (CHAdeMo), and Tesla SC.

Light Commercial Vehicles

Light commercial vehicles are defined as commercial vehicles with a gross vehicle weight under 3,500 kg. From 2020 through H1 2025, Toyota Group dominated across all LCV segments with a 39.8% market share, followed by Suzuki at 30.7% and the Renault-Nissan-Mitsubishi Alliance at 19.2%. The adoption of electric LCVs was still incipient, with sales peaking at just 77 units in Q1 2025. This may in part be attributable to limited options within the electric LCV market, which as of Q2 2025 had only two available models: the Mitsubishi L100EV and the DFSK Gelora EV. Electric LCVs were primarily purchased by postal services and freight forwarding companies, and quarterly fluctuations in LCV sales suggest that the market was driven more by institutional procurement cycles than by sustained market demand.

Heavy-Duty Vehicles

In 2024, heavy-duty vehicles accounted for approximately 8% of all newly registered vehicles, with sales reaching 72,000 units. Major manufacturers in this segment included Daimler Truck (with both Mercedes-Benz and Fuso brands), Toyota Group (Hino), and Isuzu. Together, these three players controlled 95% of the Indonesian HDV market. Transjakarta BRT reported that it deployed over 300 electric buses by the end of 2024, but available data show no recorded electric HDV transactions. This discrepancy arose from data source limitations. The primary data source for this analysis, S&P Global, collects data from the Indonesian Automotive Industry Association, which only reports sales from its members. Electric bus and truck manufacturers-many of which are newly established domestic companies or Chinese OEMs may have not yet joined the Association, meaning their sales would not be reported.

Motorcycles

Motorcycles are the most commonly used vehicle in Indonesia. Annual sales of motorcycles reached over 6 million units in 2024, with over 130 million motorcycles and scooters registered nationwide. Japanese manufacturers dominated the internal combustion engine (ICE) motorcycle segment, with Yamaha and Honda controlling the majority of the market. While other Japanese OEMs, including Suzuki and Kawasaki, were more popular in specialized niche segments, there was an increase in the number of domestic manufacturers in the electric motorcycle segment.

A subsidy introduced by the Indonesian Government in Q1 2023 helped to boost electric motorcycle sales from 0.1% to 0.5% in that quarter. The share of electric motorcycles peaked in Q2 2024, reaching around 1.4% of total motorcycle sales before falling to 0.9% in Q3 2024 and to 0.6% in Q4 2024. The subsidy program concluded in December 2024, potentially impacting future electric motorcycle adoption rates. Electric motorcycle models predominantly featured 1.5-4 kW batteries (50.7% of models offered), followed by 1–1.5 kW batteries (18.3%) and batteries under 1 kW (11.3%). The 4 kW battery option is particularly appealing to consumers, because most manufacturers claim it can deliver a range of 120 kilometers or more, making it suitable for daily commuting needs and occasional longer trips. Distinct from the electric motorcycle segment are electric mopeds, which are two-wheelers with 2–50 cc engines and a maximum speed of 45 km/h; electric mopeds do not require a license to operate and are predominantly used in residential areas. Despite not qualifying for the same incentives as electric motorcycles, electric moped sales still increased. The strong growth trajectory from 2023 to 2024 indicates strong market demand that could accelerate further if these vehicles gain popularity beyond residential areas.

Access the complete report here