Thursday 7 December 2023

Honda admits there are no plans to produce hybrid cars locally in the near future


PT Honda Prospect Motor (HPM) revealed that it will not produce hybrid cars locally in the near future.

Delivered by the Sales & Marketing and After Sales Director of HPM, Yusak Billy, the local production of hybrid cars from Honda certainly looks at products that have large volumes.

“Just wait, okay? If it is produced locally, it will definitely have a large volume,” said Yusak Billy, on the sidelines of the launch of the All New Accord RS e:HEV, in Jakarta, Friday (8/12/2023).

Honda itself has just completed its hybrid product line in Indonesia by launching the All New Accord RS e:HEV to accompany the Honda CR-V Hybrid which was previously marketed.

However, Billy said, so far his party has no plans to produce the All New Accord RS e:HEV locally at the Cikarang factory, West Java.

“Imported or local depends on the economic scale, because this [sedan] is very small or a niche market. So, the economic scale cannot be produced here,” he said.

For information, the Indonesian government has just provided hybrid incentives through PP No.74/2021 concerning amendments to government regulation No.73/2019 concerning Taxable Goods Classified as Luxury in the Form of Motorized Vehicles Subject to PPnBM.

Through this regulation, hybrid cars with a cylinder capacity of 3,000 cc that emit emissions of less than 100 grams per km are subject to a luxury goods sales tax (PPnBM) of 15% with a tax base of 40%, to 6%.

Meanwhile, hybrid cars with emissions of 100-125 grams per km were previously subject to a tax base of 46%, or 7%, to 11%.

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