Indonesia automotive market shifts as Chinese EV brands challenge Japanese manufacturers

The Indonesian automotive landscape is undergoing a significant shift, as highlighted by the GAIKINDO Indonesia International Auto Show (GIIAS) 2026. The event showcased a growing competition between established Japanese manufacturers and expanding Chinese brands. While Japanese companies like Toyota, Honda, and Mitsubishi are focusing on a ‘multi-pathway’ approach—offering hybrid (HEV), battery electric (BEV), and internal combustion engines (ICE) to suit local infrastructure—Chinese manufacturers are aggressively entering the market with diverse electric vehicle options.

BAIC Indonesia reported strong performance at GIIAS 2026, securing 407 vehicle orders. Their hybrid BJ30 HEV emerged as a top seller with 201 orders, while the electric T1 model garnered 139 orders. Meanwhile, Great Wall Motor (GWM) is reportedly preparing the Ora 5 Touring, a new electric SUV designed to compete in the mid-range segment.

Beyond vehicle sales, the automotive sector is driving local engagement. The InJourney Tourism Development Corporation (ITDC) has announced recruitment for 2,500 volunteers to support the 2026 MotoGP Indonesia at the Mandalika Circuit. Additionally, lifestyle events like Mozia MotoFest 2026 in Tangerang continue to foster community engagement within the two-wheeled automotive segment.