How Electric Vehicle Growth Is Changing Indonesia’s Market

Electric vehicle technology is reshaping Indonesia’s automotive landscape in ways no one expected a few years ago. For decades, the market has been dominated by Japanese brands, which have built an almost unshakeable reputation for quality, reliability, and high resale value. Toyota, Honda, and Mitsubishi weren’t just popular; they were the default choice for most Indonesians.

But today, the situation looks very different. If you walk into a car showroom, you’ll see stylish Korean cars with bold designs sitting next to affordable Chinese EVs packed with modern features. This is a clear sign that the market is changing, and so is the way people choose which car to buy.

This shift isn’t happening because of a single new player. It’s the result of several disruptions happening at once. Korean brands like Hyundai and Kia are winning over younger buyers with modern looks and advanced technology. Meanwhile, Chinese brands are pushing even harder by offering competitive prices and leading Indonesia’s growing EV segment.

All of these changes are making consumers rethink what truly matters when choosing a car. It’s no longer just about legacy or brand loyalty. Now, people are weighing technology, value, design, and a fresh perception of quality.

To get a better understanding of the factors that are reshaping Indonesian consumer preferences in the automotive sector, we conducted research through AskLumia.

How Car Buying Decisions Are Changing in Indonesia

AskLumia allows you to research any topic you are curious about. Whether it’s for work, personal curiosity, or business needs, you’ll get comprehensive insights in just minutes.

For this topic, we began the research with a simple prompt: How are Indonesian consumers’ car-buying preferences changing across Japanese, Korean, and Chinese brands?

Core Research Findings

AskLumia of internal and external data sources reveals a market in transition. The following key findings break down the established brand hierarchies and emerging trends that are reshaping Indonesian consumer preferences in the automotive sector.

Japanese brands continue to be the benchmark for quality and reliability, commanding strong consumer loyalty and the highest perception of quality. Internal digital personas consistently highlight reliability and high resale value as key purchasing drivers, a sentiment strongly reinforced by external web research from YouGov, which found that 90% of Indonesian consumers rate Japanese car brands as “good quality”.
Korean brands have successfully captured a specific market segment by focusing on modern design, technological innovation, and cultural marketing. Internal survey data reveals their appeal to younger, style-conscious demographics who value aesthetics and trends, often influenced by Korean popular culture. They are perceived as a stylish and innovative alternative to the more traditional Japanese offerings.
Chinese brands are rapidly gaining market share due to their competitive pricing, advanced features, and leadership in the electric vehicle (EV) segment. While internal data shows they still face a perception gap regarding long-term reliability and after-sales support, external web data confirms a dramatic increase in market share from 3.83% to 10% in early 2025, driven by their value proposition and appeal to budget-conscious, tech-savvy buyers.
Consumer decision-making is becoming more nuanced, with a clear shift towards prioritizing technology, safety, and value alongside traditional factors like reliability. Internal persona analysis shows that while older, family-oriented buyers stick with Japanese brands for practicality, younger consumers are increasingly open to new brands. This is corroborated by external research indicating 76% of near-term buyers are willing to consider emerging options that offer better features and value.

Top-Line Recommendations to Navigate Indonesia’s Automotive Shift

Based on these findings, it is clear that a static strategy will not suffice in this dynamic market. Here are the following top-line recommendations from AskLumia for Japanese, Korean, Chinese, and new market entrants to navigate this evolving landscape effectively.

Japanese brands must pivot from resting on their legacy of reliability to actively showcasing technological innovation, particularly in the EV space. To counter the rapid gains of Chinese competitors, they should launch targeted marketing campaigns that highlight their advancements in safety, fuel efficiency, and in-car technology, thereby reinforcing their value proposition to both loyal customers and younger, tech-oriented buyers.
Korean brands should solidify their position as the stylish, tech-forward alternative by continuing to leverage cultural marketing and innovative design. It is crucial to simultaneously build a stronger narrative around long-term reliability and after-sales service to bridge the trust gap with Japanese brands and justify their price premium over emerging Chinese competitors.
To overcome the persistent “Made in China” stigma, Chinese brands must make significant and visible investments in building a robust after-sales service network and offering comprehensive, long-term warranties. Marketing efforts should pivot from focusing solely on price and features to showcasing vehicle durability, positive owner testimonials, and the quality of their local service infrastructure to build lasting consumer trust.
New foreign brands entering the Indonesian market should avoid direct, broad-based competition with established Japanese or low-cost Chinese brands. Instead, they should identify and target a specific, underserved niche, such as luxury performance EVs, rugged off-road vehicles, or models with unique design aesthetics, to establish a foothold. This focused strategy allows for the development of a strong brand identity and a loyal customer base before attempting broader market expansion.

A New Chapter for Indonesia’s Automotive Industry: The Rise of Electric Vehicles

Indonesia’s car market is going through its biggest transformation in decades, and we’re only at the beginning of this journey. The days when one type of brand dominated everything are definitely over. What we’re seeing now is a much more dynamic, competitive marketplace where success isn’t guaranteed by past performance alone.

Today’s consumers are smarter, more informed, and have more choices than ever before. They’re doing their homework online, comparing features across brands, and making decisions based on a complex mix of factors that go well beyond just “reliability.”

Electric vehicles and new technology are democratizing access to premium features, putting advanced safety systems, smart connectivity, and cutting-edge design within reach of more buyers. That’s fundamentally reshaping what Indonesians expect from their cars.

In practical terms, Japanese brands can no longer rely solely on their established reputation and must demonstrate clear innovation. Korean brands have an opportunity to expand their market share by strengthening perceptions of long-term value. Chinese brands, despite rapid growth, still need to build deeper consumer trust. These shifts also create space for new entrants that can offer distinct value.

The market is now more open to new ideas. Brands that truly understand these changing preferences, invest in local infrastructure, communicate authentically with Indonesian consumers, and adapt their strategies accordingly will not just survive but thrive in this new landscape.

So, are you ready to dive deeper into consumer insights? Discover how AskLumia’s AI-powered research platform transforms complex market data into clear, actionable strategies. See what’s driving your customers’ decisions. Explore now!