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Indonesia's auto supplier DRMA sees recovering chip supply as BKPM lowers EV growth projection

Yusin Hu, DIGITIMES, Taipei 0

Credit: AFP

Indonesia car parts supplier Dharma Polimetal (DRMA) expects supply of microchips to return to normal next month, according to Indonesian-language news outlet Bisnis.

The global automotive supply chain has been disrupted due to COVID lockdown and supply of semiconductors have run short on surging demand for electric vehicles (EV).

Bisnis reported that DRMA, a major supplier for Toyota, Honda, Hyundai, Mitsubishi, and Suzuki in Indonesia, expects supply of semiconductor for regular car models to return to normal as soon as next month. The company indicated that since Shanghai lifted the lockdown in early June, supply should be gradually recovering.

But things look different for midrange or high-end vehicles.

The Association of Indonesian Automotive Industries (Gaikindo) recently pointed out that sales of midrange to high-end cars will be challenged due to prolonged shortages of chips, Bisnis cited the chairman of the Gaikindo as saying.

The association has set a sales target for this year's car market at 900,000 units.

Globally, EV sales growth might be subdued as well. Indonesia's Investment Coordinating Board (BKPM) projected 14% growth in global EV sales between 2025-2030, which is significantly lower than its previous projection of 22-35%, owing to the ongoing semiconductor shortages and supply chain disruptions.

BKPM added that the minerals needed for producing EV batteries are also running short, so growth may not be as upbeat as previously estimated.

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