Indonesia International Motor Show 2024 Held Chinese electric vehicles are favored in the Southeast Asian market

Source: People's Daily

From July 18 to 28, the Indonesia International Motor Show 2024 was held at the Indonesia Convention and Exhibition Center in Tangerang, Banten Province, Indonesia. The theme of this year's auto show is "the combination of innovation and inspiration", with a total of 11 exhibition halls, the exhibition area increased to 120,000 square meters, and more than 50 automobile brands and more than 100 auto supporting industry parts brands participated in the exhibition. Johannes, chairman of the Indonesian Automobile Manufacturers Association, said that he hopes to introduce the latest products of car companies from various countries to the Indonesian people through the auto show, and support and promote the development and transformation of Indonesia's automobile industry.

Accelerate the development of green and low-carbon transportation

At the Indonesia Convention and Exhibition Center, the booths were crowded with visitors, and major car manufacturers displayed their latest off-road vehicles, sedans, sports cars, recreational vehicles, etc. Akbar, from Bogor City, Indonesia, rushed to the auto show early in the morning. He heard that several new cars were released at the auto show, and he came to experience them. "I've seen a lot of new products, electric cars, electric trucks, electric campers...... It shows the new trends in the development of the automotive industry. Akbar said.

In order to give visitors a better driving experience, the auto show has set up the largest test drive area since its launch. According to Lin Meng, project director of the auto show, the test drive area is about 2 kilometers long, providing visitors with more than 130 vehicles from 29 exhibiting brands for test drives. The test drive area is also dedicated to various scenarios, such as a water barrier area for electric vehicles to test their waterproof performance.

Petronia's booth showcased a variety of clean energy products, including low-carbon fuels that can be used in new energy vehicles, as well as green energy stations, electric vehicle charging stations, batteries, and more. The company is committed to achieving net-zero emissions by 2060 and will support Indonesia's green energy transition by improving green energy efficiency and promoting green technology innovation and application to minimize the environmental impact of the automotive and transportation industries, said Riva, president of Petronas' commercial and trading subsidiary.

Speaking at the opening ceremony of the auto show, Indonesian Vice President Ma'ruf said that the Indonesian government is committed to building an independent, resilient and sustainable national automotive industry, one of which is to accelerate the establishment of an electric vehicle ecosystem, "The government will continue to strengthen regulations and provide incentives to accelerate the development of the electric vehicle industry through the development of electric vehicles and battery manufacturing." He encouraged the automotive industry participants at the auto show to expand cooperation between enterprises in renewable energy and technology research and development in the automotive field. "It's important to reduce carbon emissions and drive the economy towards a greener and more sustainable economy." Ma'a'Loud said.

There is great potential for cooperation between China and Indonesia on electric vehicles

In the test drive area, Putu, a visitor who had traveled from the capital city of Jakarta, had just finished experiencing a hybrid SUV. He told reporters that at the auto show, you can experience the latest models and advanced technology up close, "especially the many electric vehicles brought by Chinese manufacturers, showing advanced design and technology, which are very popular."

At this year's auto show, more than 10 Chinese auto companies such as Wuling, Chery, Nezha and Great Wall brought a variety of new products to the show. BYD's booth was packed with people, with many visitors gathering around the newly announced M6 battery electric vehicle to ask for detailed information.

Wuling has launched a special edition of the Binguo electric vehicle, which will be sold in limited quantities in Indonesia to celebrate the company's 7th anniversary in the Indonesian market. As of July 24, Wuling received a total of 948 orders at this auto show, a year-on-year increase of 45%, of which 719 were new energy orders, accounting for more than 75%. In the first half of this year, Wuling accounted for 68.4% of the new energy vehicle market share in Indonesia, continuing to maintain its leading position. Wang Weisen, deputy general manager of Wuling Indonesia Automobile Co., Ltd., said that in the future, Wuling will further enhance and expand the Indonesian market, continue to launch competitive new products, and radiate the Southeast Asian market.

In front of Chery Automobile's booth, an electric off-road vehicle attracted many visitors, which was the first electric off-road vehicle in the Indonesian market. The person in charge of Chery's booth told reporters that the company's first electric car launched in Indonesia, the Omenda E5, was very popular in the first half of this year. Qu Jizong, executive deputy general manager of Chery Indonesia, said that the company will deepen cooperation with local enterprises to develop more green and intelligent new models to meet the needs of the Indonesian market, while maintaining quality services and maintaining the image of the Chinese brand.

Chinese brands such as BAIC, Jietu and GAC Aion have also expressed that they will increase cooperation with Indonesia. Great Wall Motor exhibited two new hybrid vehicles assembled locally in Indonesia for the first time. JTU plans to launch electric vehicles in Indonesia by the end of this year; BAIC Group plans to invest more than Rp1 trillion (1 yuan is about 2,247 rupiah) to build a local plant in the next five years, and will start assembling cars at a local factory early next year......

Indonesian Ambassador to China Zhou Haoli said at the auto show that he is very pleased to see more and more Chinese electric vehicle brands unveiled in Indonesia, and the cooperation between the two countries in the field of electric vehicles is in line with the needs of Indonesia's green development, and hopes that the two companies will further deepen cooperation in the future. Indonesia's Minister of Economic Coordination Al Langga · Hartato said that Chinese electric vehicle brands have brought benefits to the Indonesian auto market and are conducive to enhancing the competitiveness of the Indonesian auto market.

Chinese automakers are increasing their investment in Southeast Asia

According to a recent report released by international strategy consulting firm Ernst & Young-Parthenon, the electric vehicle market in Southeast Asian countries such as Indonesia, Malaysia, Thailand and Singapore will usher in significant growth, and the total sales of electric vehicles in these countries are expected to increase from $2 billion in 2021 to $80 billion to $100 billion by 2035. In recent years, Chinese auto companies have actively explored the Southeast Asian market and strengthened industrial chain cooperation with other countries to achieve mutual benefit and win-win results.

Chinese electric vehicles have achieved good sales results in the Southeast Asian market. In the first half of this year, Indonesia's electric vehicle sales reached nearly 12,000 units, and the top five brands are all from China. According to the statistics of the Automobile Association of Thailand, in 2023, the total number of electric vehicles registered in Thailand will be about 76,000, accounting for 12% of the total number of car registrations, of which the top four are all Chinese brands, and the top ten Chinese brands account for 8. In Cambodia, BYD became one of the most popular electric car brands. Qu Jizong said that in recent years, China's electric vehicles have continued to sell well in the Southeast Asian market, not only contributing to energy conservation and carbon reduction in the local transportation sector, but also helping the local government to continuously improve and upgrade infrastructure construction.

Recently, a number of Chinese electric vehicle companies have announced to expand their investment in Southeast Asia: on July 4, BYD's Thailand plant officially put into operation, with an annual production capacity of 150,000 vehicles, which is expected to create 10,000 jobs; On July 15, Cambodia announced that BYD plans to invest in the establishment of an electric vehicle assembly plant in Cambodia, with an estimated annual assembly capacity of 20,000 vehicles; On July 17, GAC Aion Thailand Smart Factory was officially completed and put into operation...... From the export of finished vehicles to the construction of local factories, Chinese auto companies actively contribute to the transformation and upgrading of the local auto industry.

China is also working with Southeast Asian countries to strengthen human resource training in electric vehicle-related industries. On July 18, the China-ASEAN New Energy Vehicle Industry Industry-Education Integration Community was formally established in Guangxi, covering 89 member units, bringing together schools, scientific research institutions, upstream and downstream enterprises and many other forces to promote the coordinated development of China and ASEAN's new energy vehicle industry. Ronnie, a member of the community and chairman of the board of directors of Indonesia's Ananda Industrial Vocational and Technical School, said that China is a leader in the field of new energy vehicles, and cooperation with China can support the local electric vehicle industry.

Rachanida, director of the strategy department of the Thailand Automotive Institute, said that China's electric vehicles lead the market, which not only promotes the production capacity cooperation between Thailand and China in the automotive industry, but also accelerates the development of supply chain enterprises such as batteries and charging piles, helping Thailand form a complete electric vehicle industry chain. Degu · Daltanto, Dean of the School of Economics at the University of Indonesia, believes that more and more Chinese electric vehicles are entering the Indonesian and Southeast Asian markets, which is consistent with the green development needs of the region, which is conducive to improving the technical level of local enterprises and promoting the development of the industrial chain.