Toyota Astra Motor (TAM) has announced its readiness to launch new hybrid models following the government's introduction of a 3% luxury goods sales tax incentive (PPnBM DTP) for hybrid vehicles.

Anton Jimmi Suwandy, Marketing Director of Toyota Astra Motor, stated that the company is actively conducting studies and collaborating with its principal to develop new products that prioritise higher production volumes and affordability.

Toyota is anticipated to launch the Veloz Hybrid in 2025, with the possibility of introducing a hybrid Low-Cost Green Car (LCGC) model in the future.

"Whether it will be the Veloz Hybrid or an LCGC hybrid remains uncertain, as everything is still under preparation and planning. Once matters become clearer, we will disclose further details," said Anton during the 2024 Toyota year-end media gathering held on 17th December 2024.

He further added that the company is awaiting the issuance of technical regulations, including specific requirements for the hybrid incentive, which are expected to be outlined in the Minister of Finance Regulation (PMK). These regulations will encompass criteria such as minimum domestic content levels (TKDN).

"The models under consideration include the Kijang Innova Zenix Hybrid and the Yaris Cross Hybrid, both of which are locally manufactured with a TKDN exceeding 70%. These are strong candidates," he explained.

According to Anton, the 3% DTP PPnBM incentive is likely to stimulate public interest in hybrid vehicles. He also acknowledged the potential for additional government incentives to support the adoption of hybrid vehicles.

"Whether this is sufficient or not, there is undoubtedly potential for more incentives. Currently, this incentive only covers PPnBM. However, we remain grateful, as introducing such measures, particularly in the context of increasing taxes and other economic challenges, is a positive step," Anton concluded.

Similarly, the Deputy President Director of Toyota Motor Manufacturing Indonesia (TMMIN), Bob Azam, confirmed the company's commitment to introducing new products, including hybrid models.

"Yes, we will continue to expand into additional market segments. We have assured the government that we will develop hybrids for the next segments," stated Bob Azam.

He further emphasised the need for comprehensive support for the automotive industry, highlighting that incentives should benefit not only consumers but also manufacturers. This support is crucial for efforts to localise the production of electrified vehicle components.