Kia prepares HEV, PHEV models, awaits government's scheme on incentives
Bisnis Otomotif, 3 Nov '26
Kia Sales Indonesia is preparing several hybrid electric vehicle (HEV) and plug-in hybrid electric vehicle (PHEV) models for the Indonesian market as the government considers incentives for electrified vehicles.
Kia Sales Indonesia's Vice-President of Operations, Harry Yanto, stated that changes in consumer requirements are contributing to demand for more fuel-efficient vehicles. The company is preparing models for the Indonesian market based on these requirements.
"The products being prepared are not limited to pure electric vehicles (EVs), but also include hybrid electric vehicles. The possibility of introducing plug-in hybrid vehicles is also being considered," Harry said, as quoted on November 1st, 2026.
The Ministry of Industry (Kemenperin) is formulating an incentive scheme for hybrid vehicles. The proposed policy also covers PHEVs and range-extended electric vehicles (REEVs).
Technical discussions on the policy have involved several relevant ministries. However, the government is still reviewing the proposed incentive amounts before finalising the scheme. In addition to fiscal support, the Ministry of Industry has proposed non-fiscal measures, including exemptions from the odd-even traffic policy, simplified administrative procedures and dedicated parking facilities.
Kia has also begun developing EV production operations in Indonesia. The Kia Carens EV is the company's first model to be manufactured locally at the facility of Hyundai Motor Manufacturing Indonesia (HMMI) in Cikarang, West Java.
The Kia Carens EV's domestic component level (TKDN) has exceeded 40%. The company is targeting a local content level of 60% for the model by January 2027, in accordance with the government's electric vehicle development roadmap.
"We continue to work towards the government's target of 60% local content from January 2027. It was previously announced that the TKDN could potentially reach 80%," he explained.
Harry added that the Kia Carens EV uses domestically produced nickel-based batteries. The battery cells are supplied by the Hyundai LG Indonesia (HLI) Green Power facility in Karawang, West Java, a joint venture between Hyundai and LG Energy Solution.
