Indonesia's EV market grew by 49%

Jakarta, 20 November 2025 – PwC has released its Electric Vehicle Readiness, or eReadiness, Survey 2025. This year, in addition to the global report involving respondents from 28 countries, with a dedicated section focusing on ASEAN-6 (Indonesia, Malaysia, Thailand, the Philippines, Vietnam, and Singapore). The report centres on consumer opinions regarding electric vehicles (EVs), including BEV (battery electric vehicle), PHEV (plug-in hybrid electric vehicle), and HEV (hybrid electric vehicle).

ASEAN-6 automotive landscape

According to the report, the Total Industry Volume (TIV) for light vehicles (LV) in ASEAN-6 remained relatively stable, with only a 1.5% decline or equivalent to 2,368,000 units in YTD Q3 2025 compared to YTD Q3 20241. However, Indonesia experienced a significant contraction of -11%, driven by higher luxury vehicle taxes, reduced government spending, and a weakening rupiah that dampened purchasing power, prompting consumers to delay purchases amid economic slowdown and social instability. Conversely, Vietnam and Singapore recorded notable growth of +18% and +25%, respectively, supported by EV incentives, registration policies, and economic strengthening, highlighting contrasting dynamics across the region.

Lukmanul Arsyad, PwC Indonesia Industrials and Services Leader, added, “Amid Indonesia’s automotive market contraction of -11% in YTD Q3 2025, electrification is moving in the opposite direction. Indonesia’s EV segment grew by +49%, while ASEAN overall posted +62%, with adoption reaching 18% of total vehicle sales, slightly above the ASEAN average of 17%.” Thailand and Vietnam saw even more aggressive growth of +45% and +84%, with adoption rates significantly higher at 30% and 33%. This trend underscores a major opportunity for EV acceleration, driven by tax incentives and battery investment, at a time when the conventional market is pressured. 

Current EV market in Indonesia

Survey responses revealed three distinct groups among Indonesian respondents: 14% EV owners, 70% EV prospects, and 17% EV sceptics. Compared to ASEAN-6, Indonesia has the smallest proportion of EV prospects, while the Philippines leads with 84%. Conversely, the Philippines and Malaysia have the lowest percentage of EV owners, at just 3% and 4%, respectively.

Almost all (99%) EV owners in Indonesia are satisfied with their vehicles, an increase from last year’s PwC’s readiness report: 93%. This is the highest satisfaction rate among ASEAN countries, with Malaysia in second place (96%) and the Philippines third (93%). Across ASEAN, EV users are satisfied mainly due to improved recharging times (50%), lower operating costs (47%), and better battery lifetime (46%). Charging time and operating costs remain consistent with last year’s findings, where Indonesian respondents cited these as their primary reasons for satisfaction. However, 33% of EV owners in Indonesia are considering switching back to Internal Combustion Engine (ICE) vehicles, citing higher-than-expected maintenance costs (71%), driving experience not meeting expectations (61%), and perceived inadequate range (52%). Furthermore, 47% of Indonesian EV owners are considering purchasing a used electric vehicle as their next car, which is lower than the ASEAN-6 average of 59%.

For respondents intending to purchase an EV, medium-sized cars dominate the ASEAN-6 market (including Indonesia at 69%). Price remains a critical factor, as nearly half (48%) of ASEAN-6 prospects expect prices below US$46,000, with specific interest (15%) in lower price segment starting under US$11,000.

Consumers in ASEAN-6 have different reasons for hesitating to adopt EVs. In Indonesia, more than half (55%) of sceptical respondents cite limited range as their main concern, followed by uncertainty about battery durability (53%) and charging time (42%). Meanwhile, in most other ASEAN countries, the biggest concern is charging time, which remains the dominant factor in their decision-making.

Indonesia’s EV readiness in ASEAN

This survey also assesses readiness across ASEAN-6 countries based on each country’s government incentives, infrastructure availability, supply, and demand. Indonesia has made progress in electrification readiness, scoring 2.8 (on a scale of 5) in 2025, up from 2.0 the previous year. A major leap occurred in the government incentives dimension, which surged to 4.0, making Indonesia the country with the highest incentives in ASEAN-6.

Lukmanul Arsyad, PwC Indonesia Industrials and Services Leader, commented, “Consumer demand remains strong at 3.7, showing Indonesia is ready for EV adoption. With a solid policy foundation and the highest incentives in ASEAN at 4.0, Indonesia has a substantial opportunity to attract investment and accelerate the EV transition. But success will depend on closing infrastructure gaps, currently at just 1.4 compared to Singapore’s 4.3, and strengthening supply chains. Indonesian supply also remains relatively low at 2.3, below Vietnam’s 3.0. These structural gaps highlight the urgency for coordinated action to maintain momentum and secure Indonesia’s competitive position in the region.”