LCGC Car Sales Slide 30% in 2025 as EVs Gain Ground

JAKARTA, Investortrust.id — Indonesia’s low-cost green car segment recorded a sharp contraction in 2025 as consumer demand shifted toward electric vehicles, with sales plunging about 30 percent amid rapid EV adoption. The decline underscored a structural change in the domestic auto market as buyers favored new technology and lower running costs.

Data from the Indonesian Automotive Industry Association showed LCGC sales reached just 8,879 units in November 2025, down 30 percent from 12,737 units a year earlier. The figure was also slightly lower than October 2025 sales of 8,945 units.

Cumulative LCGC sales from January to November 2025 totaled 112,151 units, a 30.9 percent drop from 162,320 units in the same period of 2024. The prolonged downturn highlighted weakening appeal for entry-level combustion cars.

Automotive analyst Yannes Martinus Pasaribu said the slump did not reflect an overall market collapse, but rather a shift in consumer preference. “LCGC sales are falling, but that does not mean total car sales are falling. Some buyers are clearly moving to electric vehicles,” he said.

Industry data showed factory-to-dealer EV distribution reached 82,525 units in January to November 2025, out of total national vehicle sales of 710,084 units. That placed EV market share at 11.62 percent, up sharply from around 4.9 percent in 2024.

Datatrust figures showed EV sales climbed to 143,505 units by November 2025, surpassing LCGC sales estimated at around 130,643 units over the same period. The crossover marked a symbolic shift in Indonesia’s mass-market automotive landscape.

Yannes said most LCGC buyers came from the millennial generation, which tended to be tech-savvy and highly selective. “With the purchase, they get an extraordinary experience. The comfort, technology, connectivity, lifestyle, and style all come together,” he said.

Despite strong EV growth, he warned the industry should not become complacent, especially regarding charging infrastructure. “This is not being fully considered. The growth ratio has to be prepared. Those selling the cars also have responsibility,” he said, referring to limited public charging stations.

He cautioned that long queues at fast chargers could frustrate users and push them toward hybrids. “If seven cars are lining up at one charger, consumers will choose what is more rational. They end up buying a hybrid,” he said.

The EV industry also faced pressure from the expiration of luxury tax incentives, value-added tax discounts, and zero import duties at the end of 2025. Yannes predicted EV sales in 2026 would soften as manufacturers adjusted prices and reinvested under the new regulatory regime.