Initially positioned to compete with other premium brands such as BMW, Audi and Mercedes-Benz, Zeekr EV’s market presence has declined in Indonesia.
By mid-2025, the Zeekr dealership, Zeekr Center, located in Pondok Indah, was temporarily closed. The company has not officially announced whether the scheduled delivery of vehicles, originally planned for February 2025, will continue.
So why are these two premium electric car manufacturers from China feeling the sales pinch in Indonesia and will it also happen in Malaysia.
Well, to start, both electric car brands target the premium EV segment, with models often priced above IDR 1 billion. This puts them at a disadvantage against more affordable competitors and even automotive brands like Toyota, which is moving to locally assemble its bZ4X to bring prices below the 1 billion mark in Indonesia.
There is also the issue of import taxes and the lack of incentives right now in Indonesia. Unlike locally assembled (CKD) electric vehicles such as the Hyundai Ioniq 5 or Wuling Air EV, which benefit from significant government tax breaks, Zeekr and smart models are imported as completely built-up (CBU) units.
This makes them subject to high import duties, luxury taxes (PPN, BBNKB) and exchange rate volatility, driving their selling prices to levels that limit their appeal in a price sensitive market.
We must not ignore the intense competition and ongoing price wars (which is also happening in Malaysia). The Indonesian automotive market is facing an ongoing price war, particularly with the entry of aggressive Chinese brands like BYD and Chery. Sales for several newer Chinese brands have dropped drastically, leading some to “go silent” or temporarily close showrooms, as seen with the Zeekr Center in Pondok Indah.
While both brands had high-profile showcases at events like GIIAS 2024, they have effectively stepped back to reassess their strategies as market dynamics favor more affordable, locally-made vehicles.
The above points outline the strategic decisions of smart and Zeekr to pause their Indonesian market expansion due to pricing, regulatory, and competitive factors. Meanwhile, we news that Zeekr will start assembling their EV’s in Malaysia and this would probably give them a slight selling price advantage in Indonesia if the EV’s are shipping from the Malaysian assembly to Indonesia.
