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The fate of the LCGC car in the midst of the onslaught of new cars, is it still as popular as it used to be?


Jakarta

Many new cars were launched towards the end of 2021. However, of the many products released, not a single LCGC (Low Cost Green Car) car was released. Several car manufacturers in the country prefer to release new low MPV and compact SUV products. What will happen to the future of the LCGC car?

If you look at wholesales sales data (factory distribution to dealers) released by the Indonesian Automotive Industry Association (Gaikindo), LCGC cars still have spurs. The proof is, throughout September 2021, total car sales in the LCGC class reached 13,977 units.

This was agreed by the Marketing Director of PT Toyota-Astra Motor (TAM), Anton Jimmi Suwandy. According to Anton, LCGC still has its own fans. LCGC car buyers are usually consumers who have just owned a car for the first time.

“I think his contribution is still extraordinary. So Agya’s contribution per month is close to 2,000, Calya is almost 4,000 if we add up 5,000-6,000 units, if we take 23,000 units in 10 months, the amount is quite large,” said Anton in a virtual discussion together. media recently.

“I think (if) looking at the demographic contribution, the LCGC (cars) is still one of the preferred models for first car buyers,” added Anton.

Previously, it was rumored that LCGC cars would experience a price increase because they were exposed to PPnBM (Sales Tax on Luxury Goods) of 3%. For the record, LCGC cars are actually free from PPnBM obligations. However, after Government Regulation (PP) Number 74 of 2021 concerning Amendments to Government Regulation Number 73 of 2019 was issued, LCGC cars are no longer special and subject to a 3% tax. The rule is said to be effective October 16.

Karimun Wagon R Photo: Rizki Pratama

But before the regulation was implemented by LCGC car manufacturers in the country, the government actually gave incentives to LCGC cars in the form of PPnBM DTP (Government borne) the same as Toyota Avanza et al.

The regulation is contained in a copy of the Decree of the Minister of Industry of the Republic of Indonesia Number 1737 of 2021 concerning Motorized Vehicles With Sales Tax on Luxury Goods on the Delivery of Taxable Goods Classified as Luxury Borne by the Government for Fiscal Year 2021. In that regulation, LCGC cars are included in the list of PPnBM recipients. DTP.

Currently, the cars included in the LCGC category are 7-seater and 5-seater cars. For the 7-seater LCGC option, there are Toyota Calya and Daihatsu Sigra. While the 5-seater LCGC has Toyota Agya, Daihatsu Ayla, Honda Brio Satya. Meanwhile, one LCGC name, namely Suzuki Karimun Wagon R, has been stopped by PT Suzuki Indomobil Sales (SIS).

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