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Investor Presentaiton

National Policy Cost reduction incentives are likely to be more impactful for E2W than E4W Four-wheelers (all type) OTR price range and their market share in Indonesia (2022) EV cost reduction incentive benchmark (2022) 200 300 million IDR 13..70% < 100 million IDR 42.30% Sources: Gaikindo, 2022 Country > 300 million IDR GDP per capita Mid-class E4W (USD) price (USD) E4W incentives (%) 1.3% Singapore 84,500 140k 24% India 2,690 42k 23% 100 200 million IDR 42.70% Thailand 8,270 29k 15% Indonesia Sources: IESR analysis, 2023 5,010 44K 10% Indonesia Electric Vehicle Outlook 2023 • Compared to the more developed EV markets, Indonesia's EV policy still lacks cost reduction incentives. More developed EV markets allow 15-25% price reductions for average EVs, depending on the type and performance of the EV. Indonesia plans to reduce the price of E2W by about 20 - 40% (IDR 7 million) and E4W by about 10% (IDR 80 million) in 2023. However, the 10% incentive for E4W is likely to be ineffective considering that after the 10% reduction, a mid-class E4W still costs more than IDR 500 million and only 0.1% of the market can afford it (Gaikindo, 2021). The purchasing power of EV in Indonesia is lower than that of other major EV markets, as indicated by the difference in GDP per capita (Gaikindo, 2021). More developed EV markets either have higher GDP per capita or provide significantly higher cost reduction. • For E2W, the incentive could almost halve the on-the-road price of several E2W models in the market, hence could have a greater impact on adoption. Moreover, motorcycle is one of the most commonly used transportation modes to drive economic activities. However, there should be clear eligibility criteria for the recipient to avoid excessive incentive for EVs with low specification. The incentive should only be provided to, for example, models that comply with LCR regulations and have a larger battery capacity and longer riding range. The implementation of such criteria could incentivize manufacturers to build E2W with higher specifications. Such policy has been implemented, for example, in the US through the Inflation Reduction Act, which restrict the eligibility for incentives only to brands that meet the LCR criteria. 21
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