Indonesia Electric 3-Wheeler Market Outlook to 2030

Indonesia Electric 3-Wheeler Market Overview

• Indonesia Electric 3-Wheeler Market is experiencing rapid growth, driven by the government's push for sustainable transportation and the rising demand for cost-effective mobility solutions. In 2023, the market size reached USD 1.2 billion. This growth is fueled by urbanization, environmental concerns, and increasing fuel prices.

• Indonesia Electric 3-Wheeler Market is dominated by several key players, including Viar Motor Indonesia, Selis, and Ternyata. These companies have capitalized on the growing demand for EVs by offering affordable and reliable vehicles tailored to the local market.
• In 2023, Clean Motion AB collaborated with EU Horizon Europe. The project GIANTS (Green Intelligent Affordable Nano Transport Solutions) have a total of 23 project partners and a total budget of 16.61 million, of which USD 13.2 million are grants from the EU.
• Jakarta, Surabaya, and Bandung are the leading cities in Indonesia's electric 3-wheeler market. Jakarta dominates due to its high population density, severe traffic congestion, and the local government's initiatives to promote electric vehicles. Surabaya and Bandung follow closely, driven by similar urbanization trends and increasing environmental awareness.

Indonesia Electric 3-Wheeler Market Segmentation

The Indonesia Electric 3-Wheeler Market can be segmented based on several factors:

By Vehicle Type: Indonesia Electric 3-Wheeler market is segmented by vehicle type into passenger carriers and cargo carriers. In 2023, passenger carriers dominated this segment due to their widespread use in urban areas for short-distance travel. These vehicles are popular among ride-sharing services and local transportation providers, particularly in congested cities where maneuverability and cost-efficiency are crucial.

By Battery Type: Indonesia Electric 3-Wheeler Market is segmented by battery type into lithium-ion batteries and lead-acid batteries. In 2023, lithium-ion batteries dominated the segment due to their superior energy density, longer lifespan, and faster charging times. The adoption of lithium-ion batteries has been further accelerated by government initiatives promoting advanced battery technology and the reduction of lead-acid battery usage due to environmental concerns.

By Region: Indonesia Electric 3-Wheeler Market is segmented by region into North, South, East, and West Indonesia. In 2023, West Indonesia dominated the market. This dominance is attributed to the region's high population density, robust infrastructure development, and early adoption of electric vehicles driven by local government policies and incentives aimed at reducing pollution and improving urban mobility.

Indonesia Electric 3-Wheeler Market Competitive Landscape

• TVS Motor: In 2024, TVS Motor launched operations in Italy, introducing a range of products, including electric scooters and conventional bikes. This move is part of a broader strategy to enhance its global footprint, which may include three-wheeler offerings in the future as part of its expanding portfolio.
• GESITS: In 2022, GESITS is part of a collaboration with Electrum, Pertamina, and Gogoro to accelerate the development of Indonesia's electric vehicle ecosystem. This partnership aims to enhance the infrastructure and technology surrounding electric vehicles in the country, showcasing GESITS as a key player in the local electric motorcycle market

Indonesia Electric 3-Wheeler Industry Analysis

Growth Drivers:

• Increased Government Incentives for Electric Vehicles: In 2023, the Indonesian government allocated IDR 7 trillion in subsidies to support EV purchases, significantly focusing on electric 3-wheelers. These incentives have dramatically lowered the initial cost of these vehicles, enhancing their affordability and accessibility for individuals and businesses alike. By reducing the financial barriers to entry, the subsidies are fostering greater adoption of electric 3-wheelers, aligning with national goals for sustainable transportation and reducing carbon emissions.
• Expanding Charging Infrastructure: As of 2023, Indonesia had over 2,700 units of EV charging infrastructure, including 1,722 public electric vehicle battery exchange stations (SPBKLU) and 911 public electric vehicle charging stations (SPKLU). This expansion is essential in supporting the increasing number of electric 3-wheelers on the road, ensuring convenient access to charging and promoting the adoption of EVs across the country, in line with Indonesia's sustainability goals.
• Rising Fuel Costs Pushing Demand for Alternatives: The global rise in crude oil prices has sharply driven up fuel costs in Indonesia, with petrol averaging IDR 14,520 per liter in 2024. This substantial increase in fuel expenses has made electric 3-wheelers an appealing alternative for cost-conscious consumers and businesses, offering a more economical solution amidst escalating fuel prices. This shift is contributing to the growing interest in and adoption of electric vehicles across the country.

Market Challenges

• Insufficient After-Sales Service Network: The after-sales service network for electric 3-wheelers in Indonesia is still underdeveloped with a limited number of service centers equipped to handle the unique requirements of electric vehicles. This has led to concerns among potential buyers about the availability of maintenance and repairs, particularly in remote areas.
• Challenges in Battery Disposal and Recycling: With the rise in electric 3-wheeler usage, Indonesia faces significant challenges in managing the disposal and recycling of used batteries. Improper disposal of these batteries poses environmental hazards, and the absence of a robust recycling program could lead to regulatory crackdowns and increased costs for manufacturers and consumers alike.

Government Initiatives

• National EV Acceleration Program (2023): National EV Acceleration Program in Indonesia aims to significantly boost the adoption and production of electric vehicles (EVs) as part of the country's broader environmental and economic strategy. Indonesia has set ambitious targets to produce 13 million electric motorcycles and 2.2 million electric cars by 2030 with the transport sector being a major focus due to its substantial contribution to greenhouse gas emissions.
• Electric Vehicle Charging Infrastructure Development Plan (2024): In 2024, the Ministry of Energy and Mineral Resources unveiled the Electric Vehicle Charging Infrastructure Development Plan, which outlines the governments strategy to establish 10,000 charging stations across Indonesia by 2025. The plan prioritizes high-density urban areas and major transportation hubs to ensure that electric 3-wheelers and other EVs have easy access to charging facilities.

Indonesia Electric 3-Wheeler Future Market Outlook

Indonesia Electric 3-Wheeler Market is poised for significant growth by 2028, driven by a combination of government initiatives, technological advancements, and increasing consumer demand for sustainable transportation solutions.

Future Trends

• Diversification of Product Offerings: Over the next five years, the Indonesian electric 3-wheeler market will likely see a diversification of product offerings, with manufacturers introducing a wider range of models tailored to different segments, including urban commuters, commercial transport, and rural mobility.
• Integration of Smart Technologies: Future electric 3-wheelers in Indonesia are expected to incorporate smart technologies such as IoT connectivity, advanced telematics, and autonomous driving features. These innovations will enhance vehicle performance, improve safety, and offer better fleet management solutions for commercial users.