Sales of electric cars in Indonesia jumped in April after the government launched tax incentives.
Effective from April 2023, Indonesia cut the value-added tax (VAT) on electric cars from 11% to just 1%, provided they are manufactured with at least 40% local content.
Hyundai Motor Co’s sport-utility vehicle IONIQ 5, a model eligible for the tax cut, sold more than 600 units in April. This is three times the amount of the previous month, an executive with Hyundai Motor ASEAN told Reuters.
Due to the tax cut, Hyundai aims to sell 10,000 units of IONIQ 5 in Indonesia this year. That compares with 3,000 units sold since the model was launched in 2021.
The EV and hybrid sales in Indonesia are expected to exceed 50,000 units in 2023, from 20,681 units in 2022.