Japanese Automakers Go on Offensive Against Chinese Rivals in Indonesia

(Nikkei Asia) — Japanese automakers are launching a sales offensive in Indonesia as they look to become more competitive with their Chinese rivals after the government ended import duty exemptions for electric vehicles, a move the Japanese describe as a “turning point” in their battle to win buyers in Southeast Asia’s largest economy.

In 2024, the government introduced an incentive program exempting companies that committed to making cars domestically in the future from import tariffs and luxury taxes on finished imports. The program expired at the end of last year. Some Chinese companies, which particularly benefited from the policy, now say they will have to raise the prices of their vehicles.