Automotive Manufacturing Industry Indonesia

Automobiles and other motor vehicles have to comply with a certain number of regulations, whether local or international, in order to be accepted on the market. The standard ISO 26262, is considered one of the best practice frameworks for achieving automotive functional safety. Since it first supplied ball bearings to the Japanese market in 1916, NSK has broadened its range and contributed to all different fields of industry. In particular, the company focused on and moved into the automotive products arena at an early stage. Placing an emphasis on performance and product quality, the company’s business developed in tandem with the automobile industry. The VE-Trac SiC Direct platform achieves new levels of performance, efficiency, and reliability.

  • See how Arm supports automotive startups with free access to IP, support, tools, and our software ecosystem.
  • We have the experience, advanced technology and global reach to offer the support you need.
  • Our deep digital transformation expertise helps organizations reinvent the business – with the customer at the center.
  • McKinsey Center for Future Mobility The McKinsey Center for Future Mobility brings together cross-functional expertise to deliver leading-edge insight to help shape the future of mobility-related industries and the public sector.

Volvo makes ethically sourced supply chains possible for electric vehicles. A detailed analysis suggests that dense areas with a large, established vehicle base are fertile ground for these new mobility services, and many cities and suburbs of Europe and North America fit this profile. New mobility services may result in a decline of private-vehicle sales, but this decline is likely to be offset by increased sales in shared vehicles that need to be replaced more often due to higher utilization and related wear and tear. The central bank of Indonesia decided to revise the down payment requirements for the purchase of a car in an attempt to boost credit growth . Per 18 June 2015, those Indonesian consumers who use a loan from a financial institution to purchase a passenger car need to pay a minimum down payment of 25 percent .

The race for automotive digital transformation

The automobile is a primary mode of transportation for many developed economies. The Detroit branch of Boston Consulting Group predicted that, by 2014, one-third of world demand would be in the four BRIC markets . It is also expected that this trend will continue, especially as the younger generations of people no longer want to own a car anymore, and prefer other modes of transport.

Leveraging Related Industry Efforts

Further on, as cars are increasingly integrated into the connected world, automakers will have no choice but to participate in the new mobility ecosystems that emerge as a result of technological and consumer trends. A paradigm shift to mobility as a service, along with new entrants, will inevitably force traditional car manufacturers to compete on multiple fronts. Mobility providers , tech giants , and specialty OEMs increase the complexity of the competitive landscape. Changing consumer preferences, tightening regulation, and technological breakthroughs add up to a fundamental shift in individual mobility behavior. Individuals increasingly use multiple modes of transportation to complete their journey; goods and services are delivered to rather than fetched by consumers. As a result, the traditional business model of car sales will be complemented by a range of diverse, on-demand mobility solutions, especially in dense urban environments that proactively discourage private-car use.

Thirdly, the Indonesian government is eagerly trying to speed up infrastructure development across the Indonesian nation. However, it is difficult for Indonesia to boost its car exports because the nation’s automotive industry is still at the Euro 2 level, while other nations are already at Euro 5 . Other issues that limit car exports are concerns about safety standards and technology. Although the relatively new low-cost green car has gained popularity in Indonesia , most Indonesians still prefer to buy the multipurpose vehicle .

Here, the ams motor control sensor portfolio offers high accuracy at high rotation speeds, while remaining inherently immune to the external magnetic fields induced by the high currents flowing through the motor. CAR programs offer you an industry resource that consistently delivers content, events, and forums to help participants navigate the ever-changing automotive and mobility industries. It is estimated that 80% of all innovations in the automotive industry today are directly or indirectly enabled by electronics. With vehicle functionality improving with every new model, this means a continuous increase in the semiconductor content per car. Through continuous improvements in battery technology and cost, those local differences will become less pronounced, and electrified vehicles are expected to gain more and more market share from conventional vehicles.

This is a true missed opportunity in terms of export performance because about 80 percent of the world’s drivers use a sedan vehicle. The key reason why Indonesia has not developed a sedan industry is because the government’s tax system does not encourage the production and export of the sedan vehicle. The luxury goods tax on the sedan is 30 percent, while the tax on the MPV is set at 10 percent. This causes the high sedan price and in order to encourage demand for the sedan its price needs to become more competitive. Power study, emerging markets accounted for 51 percent of the global light-vehicle sales in 2010.