31 July 2025
The Atto 1 Effect Marks the Beginning of EVs for Everyone
Market Commentary
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What happens when an EV is priced like an LCGC? The answer might be BYD Atto 1, and it could mark the beginning of a major shift in Indonesia’s mass-market auto segment.
Just launched at GIIAS 2025, the BYD Atto 1 immediately grabbed attention. Priced under Rp250 million, it directly enters the price territory of LCGC cars. But this isn’t just another budget vehicle. It brings full EV performance, a spacious cabin, solid comfort, and a global brand name.
We visited a BYD dealership this week and got a firsthand look. The interior feels roomy, the seating is on par with many ICE-based entry-level cars, if not better, and the build quality is impressive for its price.
In terms of range, the Dynamic variant delivers up to 300 km, while the Premium goes up to 380 km. That’s more than enough for daily commutes and short intercity trips. Plus, in Jakarta, its EV status comes with a big perk: exemption from the odd-even traffic rule. That’s a real incentive for urban drivers. So what does this mean for incumbents like Astra International (ASII)?
ASII currently dominates the Indonesian automotive market with over 50% market share, largely through its Toyota and Daihatsu brands. On average, LCGC models contribute around 75% of Astra’s total four-wheeler volume, making this segment a critical pillar of its auto business. That’s where the real concern starts to build. When EVs like Atto 1 begin entering the traditional price territory of LCGCs, the moat protecting this volume starts to thin.
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To be clear, ASII remains fundamentally strong. Its diversified exposure across autos, heavy equipment, agribusiness, and financial services provides a buffer against short term volatility. However, if the EV shift begins in the very core of its business, particularly the mass market LCGC segment, long term resilience in automotive volumes could face growing pressure.
From an investor perspective, it’s no longer a matter of if EVs will gain share, but how fast. And the Atto 1 may be the first real sign that the shift has already begun.
Going forward, we’re watching three key developments:
For now, ASII remains on our radar as we monitor how the automotive landscape continues to evolve.
Just launched at GIIAS 2025, the BYD Atto 1 immediately grabbed attention. Priced under Rp250 million, it directly enters the price territory of LCGC cars. But this isn’t just another budget vehicle. It brings full EV performance, a spacious cabin, solid comfort, and a global brand name.
We visited a BYD dealership this week and got a firsthand look. The interior feels roomy, the seating is on par with many ICE-based entry-level cars, if not better, and the build quality is impressive for its price.
In terms of range, the Dynamic variant delivers up to 300 km, while the Premium goes up to 380 km. That’s more than enough for daily commutes and short intercity trips. Plus, in Jakarta, its EV status comes with a big perk: exemption from the odd-even traffic rule. That’s a real incentive for urban drivers. So what does this mean for incumbents like Astra International (ASII)?
ASII currently dominates the Indonesian automotive market with over 50% market share, largely through its Toyota and Daihatsu brands. On average, LCGC models contribute around 75% of Astra’s total four-wheeler volume, making this segment a critical pillar of its auto business. That’s where the real concern starts to build. When EVs like Atto 1 begin entering the traditional price territory of LCGCs, the moat protecting this volume starts to thin.
To be clear, ASII remains fundamentally strong. Its diversified exposure across autos, heavy equipment, agribusiness, and financial services provides a buffer against short term volatility. However, if the EV shift begins in the very core of its business, particularly the mass market LCGC segment, long term resilience in automotive volumes could face growing pressure.
From an investor perspective, it’s no longer a matter of if EVs will gain share, but how fast. And the Atto 1 may be the first real sign that the shift has already begun.
Going forward, we’re watching three key developments:
- Changes in ASII’s product mix and margin contribution from autos
- Electrification roadmaps from Astra’s principal partners
- Early EV demand trends in the low-price segment over the next 6–12 months
For now, ASII remains on our radar as we monitor how the automotive landscape continues to evolve.
Written by Boris, the Broker
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