Will the Cheap Car Program Displace LCGC Cars?

RiderTua.com – Cheap cars have certainly become cars that are sought after by consumers. Even though there are now LCGC, LMPV and LSUV cars filling this market, that alone is still not enough. So the Indonesian government will roll out a cheap car program which is better known as the people’s car. With the aim of increasing car sales even further.

Cheap Cars Will Be Subject to Tax Exemption

So far, car sales in Indonesia can still reach the target of one million units per year, except in 2020. Even the existence of cheap cars like the LCGC is still not enough to contribute to good results. The line-up of LMPV and LSUV cars is also increasing, but sales are still not as optimal as expected.

To maximize sales so that they can continue to exceed one million units each year, the government will launch a people’s car program. Where in this program cars sold for Rp. 250 million will receive tax exemption. With this, it is hoped that sales will be better than previous years.

LCGC Segment

Cars such as low MPVs and low SUVs have the potential to get this tax exemption, of course with the applicable conditions. However, this means that the LCGC segment will be displaced, considering that this type of car sells cars at prices below IDR 200 million. Even so, Toyota does not see this as a threat to this segment even with the people’s car program.

Because the target segments are different, LCGC cars are still sought after by first buyers. Sales have also been quite good in recent years, although now only five models are sold in Indonesia. Toyota and Daihatsu each have two models, while Honda only has one model.