Without Incentives, Green Car Sales to Remain Slow in Indonesia

Forty percent luxury tax stymies sales of green vehicles like the Toyota Prius , critics complain.

Published: 27-Dec-2007

The development and sales of so-called "green vehicles" will remain slow next year and beyond unless the government provides fiscal incentives for such cars, auto sellers say.

As of mid-December this year, the world's second largest car manufacturer Toyota has only sold six of its environmentally friendly Priuses in Indonesia, through its local subsidiary, PT Toyota Astra Motor (TAM).

Meanwhile, Honda, has only sold two of its Honda Civic Hybrids through PT Honda Prospect Motors (HPM), which is priced slightly above the Prius, at around Rp 470 million per unit.

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