Frost & Sullivan: Low Cost Green Cars Policy Set to be Game Changer in Indonesian Auto Market
JAKARTA, Indonesia, Oct. 30, 2014 /PRNewswire/ -- The low cost green cars (LCGC) policy is set to be a game changer for the Indonesian automotive market, predicts Frost & Sullivan.
Ms. Silka Yosa, Consulting Analyst, Automotive & Transportation Practice, Asia Pacific at Frost & Sullivan said that a year after the announcement of the LCGC program, overall industry volume has increased.
For complimentary access to more information on Frost & Sullivan's Strategic Analysis of LCGC Policy in Indonesia and its Impact research, please visit: http://corpcom.frost.com/forms/APAC_PR_AChia_P841-18_29Oct14.
Ms. Yosa said the low carbon emission (LCE) program with its focus on LCGC has so far proved to be successful, driving growth of the overall market by an average of 17 per cent per month.
"While the program covers many green technologies, it has excluded EVs. Compared to similar programs in Thailand and Malaysia, the LCE program is aimed primarily at boosting local demand and increasing motorization while promoting greener technologies," she added.
Ms. Yosa also said that luxury tax incentives in the LCE program and specific low pricing benchmark for LCGC benefit the domestic market rather than exports.
She added that currently, 5 vehicle models are offered under the program. There is a possibility that current participants might launch more models, she said.
"The LCGC segment volume is strongly market-driven due to the affordable and fuel-efficient traits. High support from the government through regulations, and industry readiness has led this segment to grow tremendously," she said.
Ms. Yosa said that the alternative fuel based segment such as NGV and Biofuel are currently constrained by the government's support in terms of regulations and fuel infrastructure. With strong support, this segment could have a high growth potential, she added.
She also said that high technology-based segments (advanced engines and hybrids) are primarily driven by the supply side (the automakers). "However, any penetration action will require large investment and commitment, as market demand will only grow slowly while becoming familiar with the new technology," she said.
Strategic Analysis of LCGC Policy in Indonesia and its Impact is part of the Automotive & Transportation Growth Partnership Services program, which also includes research in the following markets:
Strategic Analysis of the Electric Vehicle Charging Infrastructure in South Korea, Strategic Analysis of Commercial Vehicle Telematics Market in China, Forecast of the Indian Commercial Vehicles (CV) Market and Strategic Analysis of Commercial Vehicle Telematics Market in Australia. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Contact Us: Start the discussion
Subscribe: Newsletter on "the next big thing"
Register: Gain access to visionary innovation
Media contact:
Alice Chia
Corporate Communications – Asia Pacific
Email: alice.chia@frost.com
Shena Agusta
Corporate Communications – Indonesia
Email: shena.agusta@frost.com
Phone: +62.21.571.0838
Share this article