BYD Indonesia is advocating for plug-in hybrid electric vehicles (PHEVs) to receive separate policy treatment from conventional internal-combustion-engine (ICE) vehicles and standard hybrids.

The company is seeking government recognition of PHEVs as part of the electric vehicle category, along with access to certain incentives and regulatory benefits. BYD views PHEVs as a transitional technology between fossil-fuel-powered vehicles and fully electric vehicles. According to the company, the technology should be given a policy position that reflects its electrified characteristics rather than being treated in the same manner as conventional hybrids.

Luther Panjaitan, Head of Marketing, PR and Government Relations at BYD Indonesia, stated that the primary focus of PHEV technology is electric driving. He explained that, although a combustion engine remains part of the vehicle, it primarily serves as a backup when the battery is depleted or when specific operating conditions require its use.

BYD argues that PHEVs are more closely aligned with battery electric vehicles than with conventional hybrids because they utilise larger batteries and can travel a certain distance using only electric power. According to the company, this differentiates them from vehicles that rely more heavily on internal-combustion engines.

According to BYD, the combination of charging capability and larger battery capacity provides grounds for separating PHEVs from the internal-combustion vehicle category. The company maintains that this distinction should be reflected in government policy, even if the incentives offered are not identical to those available for battery electric vehicles.

At present, PHEVs do not receive the same incentives available to electric vehicles in Indonesia. Battery electric vehicles benefit from both financial and non-financial incentives, while hybrids and PHEVs continue to be treated similarly to conventional vehicles under several regulations.

One area highlighted by BYD concerns vehicle identification and road-access regulations. Electric vehicles use special licence plates featuring a blue strip, whereas PHEVs have not received similar treatment and are not exempt from odd-even traffic restrictions in certain areas.

According to BYD, this situation reduces consumer interest in PHEVs. The company argues that when regulations continue to align PHEVs with ICE vehicles, there is less regulatory differentiation between the two vehicle types. Luther commented, stating: "Because right now, as long as it is hybrid, it is the same as ICE." The statement reflects BYD's position that current policies do not distinguish between different levels of vehicle electrification.

BYD has stated that a tiered policy framework is required. According to the company, not all electrified vehicles should receive identical treatment; however, there should be a clear distinction between conventional vehicles, standard hybrids, PHEVs, and fully electric vehicles.

According to BYD, the establishment of such distinctions within the regulatory framework could increase the adoption of electrified vehicles in Indonesia. The company views PHEVs as an intermediate option for consumers who are not yet prepared to move directly to fully battery-electric vehicles.

The proposal has not yet progressed to detailed discussions with the government. Luther stated that the concept of classifying PHEVs as electric vehicles and granting related incentives remains at an early stage. BYD has expressed the hope that the proposal can be incorporated into future policymaking on vehicle electrification. The company links the proposal to broader efforts aimed at increasing the adoption of fully electric vehicles over time.

Within this broader context, BYD has stated that incentives for PHEVs could influence consumer behaviour. According to the company, drivers who currently rely on fossil-fuel-powered vehicles may be more likely to adopt electrified technology without transitioning directly to a fully electric vehicle.

If special treatment for PHEVs is ultimately approved, BYD has stated that the impact could extend beyond vehicle sales. According to the company, such measures could support the energy transition in the transport sector and contribute to the adoption of low-emission vehicle technology in Indonesia.