Chinese EVs chip away at Japan automakers' dominance in Indonesia

Government efforts to build industry prompt entry by Chinese carmakers

20250325N Toyota Indonesia

Toyota Motor commands a third of Indonesia's auto market. (Photo by Tomoyoshi Oshikiri)

TOMOYOSHI OSHIKIRI

JAKARTA -- Japanese automakers, long competitive in Indonesia, Southeast Asia's largest market, are facing pressure to reassess production capacity as they grapple with a shrinking market and the rise of Chinese electric vehicles.

"The new-vehicle market pie is getting smaller," said Hiroyuki Ueda, president director of Toyota Astra Motor, an Indonesian unit of Toyota Motor. "There are more players in it, and it's a dog-eat-dog situation."

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