Auto Components Industry Faces Setbacks

Automotive components and spare parts industry are facing severe problems since suffering from a material shortage and the obligation to shift the production patterns from motor-based vehicle manufacturer to electric vehicle manufacturer. Such issues could potentially push down the productivity of domestic spare parts industry as one of the most significant contributors to foreign exchange.

Based on Indonesian Automotive Parts and Components Association or GIAMM records, the production volume of auto components industry will naturally decrease after the industrialization of electric vehicles is up and running. On the other hand, the industry still depends on expensive imported materials since domestic steel, iron, and aluminium producers are unable to produce adequate products. These problems worsen the auto industry problem at large, being stagnated and struggling to push the sales more than 1.1 million units per year.