Indonesia’s LCGC programme pushing the numbers

daihatsu ayla

Some updates on the sales of lower-priced compact vehicles in Indonesia since the country’s Low Cost Green Car (LCGC) policy kicked into place last month. The recent Indonesian International Motor Show in Jakarta saw Japanese automakers unveiling a slew of new models in an attempt to capture more of the growing pie.

According to the Nikkei, Daihatsu reports that demand for its 1.0 litre Ayla compact five-door hatch, which is priced at 76.1 million rupiah (RM21,150), has been brisk – a dealership in the outskirts of Jakarta, for example, has sold around 100 Aylas in just two weeks. A spokesman said around 40% of the buyers are new customers, with those in their early-30s with young families making up a large percentage.

The Ayla and its eco-car twin, the Toyota Agya, premiered at last year’s IIMS, and were originally supposed to have begun selling in the country last December following the completion of the new plant that would build them, but their market introduction was put on hold as the companies waited for the Indonesian government to announce the LCGC programme. Both were the first vehicles certified in the programme.

toyota agya

Under the programme, a 10% luxury tax normally included in car prices is waived for LCGC-certified vehicles. Programme requirements for LCGC compliance include an engine capacity of below 1,200 cc, a minimum fuel consumption of 20-22 km per litre and a price of 95 million rupiah (RM26,400) or less. As it goes along, the LCGC cars will also need to contain 80% locally-sourced parts.

The report adds that a market survey by Daihatsu anticipates that by 2020, around five million Indonesian households will have the ability to purchase a new vehicle, which is more than double the 2010 figure. The automaker believes that with programmes such as the LCGC, the number could increase further to 12 million households.

Plenty of promise from a country with a population of 250 million and a total industry volume of 1,100,000 units in 2012 – presently, the country has a rate of 36 vehicles per 1,000 residents, and with a view of the potential spoils, it’s easy to see why automakers are viewing it as one of the most promising automobile markets in the world.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.



  • dun medan on Oct 08, 2013 at 4:08 pm

    hurm…looks familiar…

    Like or Dislike: Thumb up 0 Thumb down 0
  • waduhhh boleh bikin macet lagi Jakarta

    *Jakarta will be congested with more cars !

    Like or Dislike: Thumb up 7 Thumb down 1
  • laloya on Oct 08, 2013 at 5:14 pm

    Ini baru kerajaan prihatin bantu rakyat miskin bukan rompak duit rakyat dgn cukai yg tak munasabah umno bn penyamun tarbus.

    Like or Dislike: Thumb up 26 Thumb down 22
  • We r simply cant compete with numbers period.. just making car cheaper does not mean car maker produce car here….that wat i think…we oni can compete in niche area. I hope that EEV programme that gov want to announce is niche of LCGC thai/indo

    Like or Dislike: Thumb up 8 Thumb down 2
  • arefief on Oct 09, 2013 at 10:28 am

    i like alya design. if it sold at M’sia, i’ll consider to buy it.

    Like or Dislike: Thumb up 2 Thumb down 1
  • Low Budget on Oct 09, 2013 at 11:10 am

    Alamak! RM21K for a 1000cc car. Re-badge in Boleh Land next year and the price will be RM36K. Malaysia Boleh!

    Like or Dislike: Thumb up 6 Thumb down 1
    • arefief on Oct 09, 2013 at 12:36 pm

      are u sure it only RM36K? i think with over 200% m’sia tax, it will be RM45K above..

      Like or Dislike: Thumb up 6 Thumb down 2
      • how come? max excise tax for 1800cc and below is 75%, 0% import tax n 10% sales tax

        Like or Dislike: Thumb up 1 Thumb down 0
  • decent driver on Oct 09, 2013 at 12:18 pm

    i believe similar models will be mass produced by P2. one thing i dislike Myvi and its siblings is the higher head-light position which annoy other road users. Normal headlight beam is on the same level with high-beam for other car. How come the JPJ approve this car?

    Like or Dislike: Thumb up 2 Thumb down 1
    • If u don’t drive lotus car, then u don’t have any trouble with Myvi and it sibling’s headlamp.

      Sorry, joking only. peace :)

      Like or Dislike: Thumb up 3 Thumb down 0
  • very cheap at premium spec only RM30k…
    viva elite premium spec RM42k…
    RM12k cheap than local Viva Elite premium spec…
    and also the Agya seem are using the latest Daihatsu Mira Es design…

    Like or Dislike: Thumb up 1 Thumb down 0
  • Indonesia’s LCGC vs Malaysia’s “niche” HCGC (High Cost Green Car) or EEV, wonder who will sell more cars, attract more FDI and create more jobs?

    Also Indonesia’s LCGC and Thailand’s Eco Car emphasize small cars less than 1200 cc, meaning that Proton’s dreams of tapping these 2 markets for sales volume have been dealt a serious blow. (Proton engines only come in 1300 cc and 1600 cc variants).

    Like or Dislike: Thumb up 0 Thumb down 0

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