EV Development Not in Japanese Automotive Giants’ Strategies: Research

Research from the Institute for Energy Economics and Financial Analysis (IEEFA) suggests that developing an electric vehicle (EV) ecosystem in Indonesia is not in line with the business strategies of major automotive manufacturers. According to IEEFA Energy Analyst Putra Adhiguna, this condition could undermine the EV program in Indonesia.

In a report titled "Electrifying Indonesia's Road Transport", IEEFA stated that Honda, Mitsubishi, Suzuki, Toyota and Daihatsu, which control 92 percent of the market, have slow vehicle electrification plans that are not in line with the government. "They always emphasize the importance of providing vehicle choices for consumers, but all-electric options from them are almost nowhere to be found," Putra said on Monday.

According to him, the same condition occurs in the motorcycle market, concentrated in two brands, Honda and Yamaha. Both control 96 percent of the motorcycle market. The IEEFA report said that the portion of Battery Electric Vehicles (BEV) only accounts for 0.16 percent of Toyota's sales units worldwide in 2022. Meanwhile, Honda's electric motorcycle sales are very minimal. "Positive steps towards electrification are starting to appear but look weak, especially in developing countries," Putra said.