Indonesia’s automotive landscape is showing a notable shift in early 2026, with a decline in the typically dominant Low Cost Green Car (LCGC) segment, whereas compact electric vehicles like the BYD Atto 1 are gaining traction.
Data from the Indonesian Automotive Industry Association (Gaikindo) shows that 3,361 units of the Atto 1 were sold in January 2026, a figure that rose to 3,700 units in February.
While the Atto 1’s volume hasn’t yet surpassed total LCGC sales, its 10% month-over-month growth demonstrates a growing consumer interest in more modern electric vehicle options. This trend reflects a broader global move towards electric mobility as prices become more competitive.
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Overall monthly sales still favor the LCGC segment. The Honda Brio Satya, a popular city car, distributed 6,526 units between January and February 2026.
Though, the Brio Satya experienced a month-over-month sales decline, falling from 3,430 units in January to 3,096 units in February.
Other LCGC models also lagged behind the Atto 1’s February performance of 3,700 units. The Daihatsu Calya distributed 3,036 units, the Daihatsu Ayla 3,030 units, and the Toyota Agya 1,180 units.
According to Gaikindo’s wholesale data (factory distribution to dealers) for January and February 2026, the affordable, environmentally friendly vehicle segment is facing challenges. In the first two months of 2025, the LCGC market recorded 28,147 units, but this year’s performance has dropped significantly.
Cumulatively, only 22,106 LCGC units were sold in the first two months of 2026, representing a decrease of 6,041 units compared to the previous year. This translates to a 21.46% decline – a substantial figure for a market segment targeting first-time car buyers.
LCGCs accounted for 122,686 units sold throughout 2025. During the first quarter of 2025, these affordable vehicles averaged over 12,000 units shipped per month, but distribution fell to between 8,000 and 9,000 units per month in the second half of the year.
Jongkie Sugiarto, Deputy Chairman I of Gaikindo, stated that the availability of more affordable electric vehicles is posing a challenge to the LCGC segment.
“Our LCGC is damaged, down 37 percent. As now, for Rp 200 million, people can already get an electric car with a good design and complete features,” Jongkie said, according to CNBC Indonesia.
Jongkie added that the affordable vehicle segment still has significant potential in Indonesia, and a shift towards electric vehicle technology is inevitable.
“People are now looking at options. If the price difference is minor but the technology is more advanced, they will naturally switch,” Jongkie explained.
(riar/lua)
