Jakarta. Chinese automotive manufacturer GAC Aion New Energy Automobile Co., Ltd. (GAC Aion) is tapping into the Indonesian market. GAC Aion will collaborate with the Indomobil Group for the distribution of vehicles.

"In line with Indomobil Group's commitment and corporate activism in carbon emissions reduction, we are proud to introduce GAC Aion," said Jusak Kertowidjojo, President Director of Indomobil Group, during the signing ceremony of their partnership in Jakarta on Tuesday.

GAC Aion is a subsidiary of GAC Group, one of China's leading automotive conglomerates. Established in 2017, GAC Aion specializes in the development, production, and distribution of electric vehicles (EVs) with a focus on cutting-edge technology and sustainable mobility solutions.

According to the Managing Director of GAC Aion, Gu Hui Nan, GAC Aion will introduce four new vehicles in the coming year. The debut of GAC Aion will commence at the Gaikindo Indonesia International Auto Show (GIIAS) in June.

In its debut, the automotive manufacturer will first introduce two vehicles, namely the Y Plus and Hyper HT. 

Chinese automotive company is tapping into Indonesia's electric vehicle market. The government is planning to boost the adoption of EVs by providing incentives to consumers as well as producers.

For electric cars, the government has decided to eliminate taxes and import duties for completely built-up (CBU) electric cars until the end of 2025 as long as the company is building a manufacturing plant in Indonesia. 

Vietnam's VinFast and China's BYD are individually investing over $1 billion each to establish factories in Indonesia.

In 2023, the government reduced the value-added tax on electric car purchases to just 1 percent, provided the EV has 40 percent of locally-made components. 

The Indonesian Automotive Industry Association (Gaikindo), reports a surge in electric car sales in December 2023, reaching approximately 3.200 units, a 65 percent increase compared to November 2023 and a 33 percent rise compared to December 2022.