Maybank Investment Bank said on Thursday that growing electric vehicles (EV) adoption should continue to support industry volumes into the second half of 2026.
The research house said in a note that key structural trend remains the increasing penetration of EVs.
Electrified passenger vehicles (battery electric vehicles [BEVs], plug-in hybrid electric vehicles [PHEVs], and hybrid electric vehicles [HEVs]) represented approximately 28 percent of total car sales in the first eight months of 2026, with BEVs accounting for 18 percent of year to date national sales, HEVs 9 percent, and PHEVs 2 percent.
“The rising share of EVs and hybrids suggests a gradual shift in consumer preferences, supported by broader model availability and aggressive expansion by Chinese brands, particularly in the affordable passenger vehicle segment,” said Maybank.
It also said Chinese brands continue to be the primary beneficiaries of this transition, leveraging competitive pricing, expanding local assembly operations, and broader model offerings.
However, the Indonesian automotive market continues to be dominated by internal combustion engine (ICE) vehicles, which accounted for 72 percent of total wholesales in the first eight months of 2026, although electrification trends are gaining momentum.
Maybank also highlighted that Indonesia’s EV market remains significantly segmented by technology, with Chinese brands dominating BEVs while Toyota leads the HEV segment.
BYD and Jaecoo captured 32.7 percent and 23 percent of BEV sales, respectively, followed by Geely at 12 percent, giving the top three brands a combined 67.7 percent share.
In contrast, Toyota commanded 67.8 percent of HEV sales, well ahead of Suzuki at 17.5 percent and Honda at 6.8 percent.
Overall, Indonesia’s auto market maintained a healthy recovery in August, with car sales reaching 81,700 units (+1 percent month on month, +32 percent year on year), marking the strongest monthly volume recorded so far in 2026.
As a result, first eight months wholesales rose 20 percent year on year to 599,500 units, indicating that vehicle demand remains resilient despite ongoing macro uncertainties.
The stronger August performance was likely supported by purchases generated during GIIAS 2026, held from July 30 to August 9.
“We remain constructive on Indonesia’s auto-demand outlook, as improving consumer confidence, manageable financing conditions, and growing EV adoption should continue to support industry volumes into the second half,” said Maybank.
Nevertheless, it sees incumbent manufacturers face increasing pressure to defend market share from aggressive Chinese competitors.
Southeast Asia’s EV sales accelerate as energy crisis continues