Jakarta. Indonesia’s electric vehicle penetration has surpassed that of the United States for the first time, marking a major milestone in the country’s clean-energy transition, according to new research by Ember Energy.

Electric vehicles now account for more than 15% of total new car sales in Indonesia this year, the London-based think tank said. The shift places Indonesia ahead of the US and highlights the accelerating pace of EV adoption across Southeast Asia.

The surge has been driven in part by government incentives, including value-added tax reductions for EVs that meet minimum local-content requirements and import permits for manufacturers committing to build production facilities in Indonesia.

Indonesia has also become one of the largest export destinations for Chinese electric vehicles, ranking behind only Mexico, Brazil, and the United Arab Emirates. Ember’s research shows that growth in Chinese EV exports to Indonesia is the second fastest globally.

The broader ASEAN region is emerging as one of the world’s strongest EV markets. According to Ember, electric vehicles now account for around 40% of new car sales in Singapore and Vietnam, exceeding penetration rates in the UK (33%) and the European Union (26%). In the first three quarters of 2025, Thailand’s EV market share reached 21%, surpassing Denmark.

“These shifts show how quickly the region is moving from a low base to a position of leadership,” Ember said in a report published earlier this month.

Vietnam illustrates the pace of change. In 2021, EV sales there accounted for less than 0.05% of the market. Across emerging ASEAN economies, EV penetration has now surpassed Japan, where electric vehicles represent just 2% of new car sales.

The research also points to a broader transformation in the global EV landscape. In 2019, only four countries — all in Europe — had EV market shares above 10%. By 2025, that number has risen to 39 countries, including 12 outside Europe.

EV Growth Accelerates in Indonesia
Separate data from PwC Indonesia shows Indonesia’s EV segment grew 49% year on year, with electric vehicles accounting for 18% of new car sales — above the ASEAN average of 17%.

In its Electric Vehicle Readiness report published last month, PwC Indonesia said EV adoption has continued to rise despite an 11% contraction in Indonesia’s overall automotive market in year-to-date Q3 2025.

“Amid Indonesia’s automotive market contraction, electrification is moving in the opposite direction,” wrote Lukmanul Arsyad, Industrials and Services Leader at PwC Indonesia. He noted that while ASEAN as a whole posted EV growth of 62%, Indonesia’s adoption rate remains among the strongest in the region.

Among the six largest ASEAN markets — Indonesia, Malaysia, Thailand, the Philippines, Vietnam, and Singapore — Indonesia has the smallest share of potential EV buyers, while the Philippines leads with 84%. However, the Philippines and Malaysia currently have the lowest proportion of EV owners, at just 3% and 4%, respectively.

Nearly all EV owners in Indonesia — 99% — said they are satisfied with their vehicles, up from 93% in PwC’s previous survey. This is the highest satisfaction rate in ASEAN, followed by Malaysia (96%) and the Philippines (93%).

Across the region, EV owners cite improved charging times (50%), lower operating costs (47%), and better battery life (46%) as the main reasons for satisfaction. In Indonesia, however, 33% of EV owners said they are considering switching back to internal combustion engine vehicles, citing higher-than-expected maintenance costs (71%), driving experience not meeting expectations (61%), and concerns over driving range (52%).

Despite these challenges, Lukmanul said overall consumer demand remains strong, “showing Indonesia is ready for EV adoption.”

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