Three Reasons Why Consumers Are Reluctant to Switch to Electric Vehicles

It is not easy for people to switch from fossil-based vehicles to electric. There are several factors.

KOMPAS/PRIYOMBODO (PRI)

Workers are preparing an electric car that will be showcased at the 2024 Indonesia International Motor Show (IIMS) at JIExpo Kemayoran, Jakarta, on Tuesday (13/2/2024).

JAKARTA, KOMPAS - Research results from the Indonesian Automotive Institute, as processed by Sinarmas Sekuritas, found three main obstacles that make consumers reluctant to switch to using electric vehicles, from fossil fuel vehicles. The three obstacles are the selling price of electric cars which is more expensive, the distance traveled is still shorter, and the charging time is still too long.

In a webinar entitled "The Future of Electric Vehicles & Nickel in Indonesia", Wednesday (27/3/2024), Deputy Head of Research SimInvest (Sinarmas Sekuritas), Inav Haria Chandra explained, the selling price of electric and petrol hybrid electric cars (hybrid electric vehicles/HEV)reaches 1.2 times that of ordinary gasoline-fueled cars.

Moreover, battery-based electric cars (Battery Electric Vehicles/BEV) and plug-in electric cars (Plug In Hybrid Electric Vehicles/PHEV). The price is 1.5 times that of a petrol car.

There are three obstacles, namely the higher price of electric cars, the shorter distance they can travel, and the long charging time required for the vehicles.

He explained that currently, the price of electric cars is more expensive than gasoline cars because they are still in the early generation of development. For this phase, the industry requires higher production costs, including for the development of electric car batteries.

This is also related to the second challenge, namely the shorter range of electric cars compared to gasoline-powered cars. On average, gasoline cars can travel up to 500 kilometers per tank fill. Meanwhile, battery electric vehicles can only reach 300 kilometers on a single charge.

The third obstacle is the time required for electric power charging, which is still too long. Refueling a car with gasoline takes no more than 0.1 hours or 6 minutes, while normal charging time for electric vehicles takes up to 8 hours. Even fast charging technology can only reach 0.5 hours or 30 minutes.

"These are the main obstacles that make consumers reluctant to switch to driving electric cars," he said.

However, as time goes by, Inav continued, the price of batteries will certainly decrease and the price of electric cars may be cheaper than gasoline cars. The capacity and range of electric car batteries will also continue to increase.

Also read: Efforts to Encourage Electric Car Population

"The development of electric charging technology will also accelerate rapidly. This is because manufacturers of electric cars are constantly innovating and developing. This is where the government plays a role in intervening to cultivate both the demand and supply aspects of electric cars," he said.

From the demand side, various fiscal incentives can reduce the selling price of electric cars, making them more attractive to consumers. As for the supply side, the government also needs to continue to encourage the presence of investments from electric car manufacturers, in order to produce or simply assemble them here.

KOMPAS/RADITYA HELABUMI

Chinese automotive manufacturer BYD is participating in the Indonesia International Motor Show (IIMS) 2024 held at JI Expo Kemayoran, Jakarta on Thursday (15/2/2024) for the first time.

Around the world

At the webinar, Roman Nedielka was also present, a person who travels around the world riding an electric motorbike. This activity is named 'E-round the world".

He began his journey around the world riding an electric motorcycle brand Zero with a DSR/X variant in July 2023. To date, he has traveled no less than 38,000 km riding the motorcycle from Jakarta to China, the Middle East, and Europe. Now, he plans to return to Jakarta.

Also read: New Electric Motorcycle Subsidy Uptake Reaches 5 Percent

During the journey, he admitted that he did not experience any difficulties in driving. When it was time to recharge the electric power, he was able to do so through public facilities near the area. His motorcycle could also travel far, up to hundreds of kilometers, just like gasoline motorcycles.

"I want to say that this electric motorcycle can also be used for long distances. I give an extreme example, which is to travel around the world. Especially if it is only used for daily purposes in Indonesia," he said.

He believes that electric motors are easier to maintain. This is because they do not require a lot of repairs or component replacements. The most important thing is to keep the battery power and motor running smoothly.

The Chairman of the Indonesian Electric Motorbike Industry Association (Aismoli), Budi Setiyadi, said that one of the obstacles to the low population of electric vehicles in Indonesia is the lack of education to the public about the operation of electric motors.

Currently, there are still many misconceptions and incorrect concerns among the public regarding the use of electric motorcycles, such as worrying about short circuits during rain or floods. However, electric motorcycles are equipped with technology to prevent short circuits when facing light rain or flooding.

In addition, he added that the network of electric motorcycle dealers has not yet reached various regions. This makes the distribution of electric motorcycles unable to be massive and evenly spread.

Chairman of the Indonesian Motor Vehicle Industry Association (Gaikindo), Jongkie D Sugiharto, stated that one of the problems with the population of electric cars not being widespread in Indonesia is their still excessively high cost.

The most popular car market in Indonesia is in the price range of IDR 100 million to IDR 300 million per unit. Meanwhile, the price of electric cars currently hovers around IDR 700 million per unit. Tax incentives from the government are believed to be able to lower car prices and attract consumer interest.

Citing data, the total sales of pure electric or battery-powered vehicles in 2023 will reach 17,038 units. This is equivalent to 1.69 percent of the total national car sales in 2023, which amounts to 1,005,802 units.