GWM Chooses Hybrids Over EVs for Indonesian Market Amid Regulatory Hurdles

Jakarta. While Chinese automakers like Wuling, BYD, and GAC Aion are making strides in Indonesia's electric vehicle (EV) market, Great Wall Motors (GWM) has taken a different approach by introducing hybrid vehicles. Despite its robust production capabilities, GWM is holding off on selling fully electric cars in Indonesia.
GWM's production facility in Wanaherang, Bogor, West Java, is ready to assemble two hybrid models: the Haval H6 HEV and Haval Jolion HEV. However, the company's General Manager for Inchcape Indomobil Energi Baru, Constantinus Herlijoso, cited several technical challenges as reasons for the delay in launching electric vehicles in the country.
“From an outside perspective, selling electric cars seems appealing,” Herlijoso said on Wednesday. “The government has implemented various regulations and incentives to promote the EV industry. However, there are technical aspects that make it challenging for GWM to sell electric cars in Indonesia.”
One significant hurdle has been the complexity of assembling and producing electric vehicles under Indonesia's regulatory framework. When GWM entered the Indonesian market last year, the regulations for electric vehicle assembly and production were not clearly defined.
“While the regulatory issues have been addressed to some extent, there are still several other regulations that are difficult for GWM to comply with,” Herlijoso added. “For instance, the supply of batteries is a major concern. In China, the battery supply for electric vehicles is abundant. In contrast, Indonesia has only one operational battery supplier, with others merely committed to supply.”
Despite these challenges, GWM remains committed to bringing electric vehicles to Indonesia. “We are solidifying our commitment while we wait,” Herlijoso said.
At last year's Gaikindo Indonesia International Auto Show (GIIAS 2023), GWM showcased its electric car, Ora. However, the hatchback has yet to be made available to Indonesian consumers.
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