LCGC Cars, are They Still in Demand in 2023?

Published at:

17-02-2023

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LCGC cars or Low Cost Green Cars are one of the best-selling types of cars in Indonesia. Not only is the price somewhat cheaper than other types of cars, this car is also more environmentally friendly because it is fuel efficient. However, LCGC has begun to be subject to a Sales Tax on Luxury Goods (PPnBM) of 3% which makes the selling price rise. Can this affect consumer interest in purchasing LCGC cars in 2023? Check out the answers in our article below.

When first released on the market in 2013, LCGC cars received a relaxation of Sales Tax on Luxury Goods (PPnBM) of 0%. This is stated in the Regulation of the Minister of Industry no. 33/M-IND/PER/7/2013 concerning Development of Production of Four-Wheeled Motorized Vehicles that are Energy Efficient and Priced Decently. This tax relaxation had a major effect on reducing the selling price of LCGC cars on the market.

Low prices and efficient use of fuel attract many consumers to buy LCGC cars. The various advantages offered by this car make it one of the most popular types of cars in Indonesia. Want to know what an LCGC car is, specifications, and tips for choosing an LCGC car? Let’s read and review this article ‘til the end for a complete explanation about LCGC cars!

What is an LCGC Car

LCGC cars or Low Cost Green Cars are cheap and environmentally friendly cars supported by government programs in PP No. 33 and 41 of 2013. These cars refer to the electric, hybrid biodiesel, and low carbon emissions cars. LCGC car production is made domestically and is targeted to the middle class consumers. The LCGC car release aims to encourage people to choose environmentally friendly cars, thus reducing fuel subsidies, reducing exhaust emissions, and increasing employment in the country.

LCGC cars are called environmentally friendly cars because they produce low gas emissions. In addition, this car is produced with a fairly small cc so it is more durable and efficient in fuel use. Then, what are the differences between LCGC cars and other cars?

LCGC Car Specifications

The LCGC car is part of the government program, which makes this car to have special specifications in the production process. The following are the specifications of the LCGC car:

For petrol engines, this car must have an engine capacity of 980cc to 1200cc.
For cars with gasoline or diesel fuel, the level of fuel consumption used is around 20 km/liter.
The gasoline used by LCGC cars must be RON 92.
For diesel fuel engines, this car must have an engine capacity of 1500cc.
The diesel fuel used by LCGC cars must be CN 51.
LCGC cars have a turning radius of about 4.6 meters.
LCGC cars display distinctive Indonesian brands and logos.

Differences between LCGC Cars and Other Cars

Apart from the specifications, LCGC cars have several differences from other cars circulating in Indonesia. Here are some aspects that distinguish LCGC cars from other cars:

1. Design Aspect

At first glance, the LCGC car design doesn't have much difference from an ordinary car. Usually LCGC cars carry a simpler and minimalist design than ordinary cars, because they are adjusted to the target market and their specifications. One thing that distinguishes LCGC cars from other cars is the addition of Indonesian branding and logos. You can also decorate the appearance of your LCGC car by adding additional accessories from your authorized dealer or subscription repair shop.

2. Machine Aspect

The engines used by LCGC cars generally have a small capacity and relatively low power compared to ordinary cars. Usually LCGC cars have an engine capacity of around 1000cc, 1200cc or 1500cc. Although the engine performance used by LCGC cars is not very high, this type of engine is much more fuel efficient than other cars. LCGC cars are perfect for those of you who want to save money on buying fuel.

3. Price Aspect

The biggest appeal of LCGC cars is that they are much cheaper compared to regular cars. This is as the name suggests, Low Cost Green Car. Usually LCGC cars are sold in the price range of IDR 100,000,000 to IDR 200,000,000. Even though the price of LCGC cars has increased after being subject to a Sales Tax on Luxury Goods (PPnBM) of 3%, it is still an alternative car at a relatively cheap price compared to other types of cars.

4. Features Aspect

The features of the LCGC car are simple compared to other cars. This is to reduce production costs, which keeps the selling price of this car affordable. LCGC cars are not suitable for those of you who want to buy a car with sophisticated and various features.

Tips for Choosing an LCGC Car

Before buying or renting an LCGC car, there are several important things that you should pay attention to. Here are some tips that can help you:

1. Car Design

Choose an LCGC car design that fits what you want and need. Usually this car has a minimalist design. However, LCGC cars are also suitable for lovers of sports cars and city cars because of their optimal body construction.

2. Cabin Area

The cabin area of the LCGC car is quite compact compared to other cars. Make sure the size of the LCGC car fits your needs. You need to consider the number of passengers, luggage capacity and other things so that it can support your daily needs.

3. Engine Performance

Before buying or renting an LCGC car, you must first know the engine specifications. It's a good idea to consider the road terrain that you often travel on and compare the engine performance of several different brands. This will help you to choose an LCGC car with the most appropriate specifications.

4. Feature

Most LCGC cars do have simple features, but you don't need to worry because several LCGC car brands offer interesting features. Some examples of the features offered are automatic mirrors, four-way electric windows, a pair of airbags, ABS and EDB brakes, a touchscreen head unit with a USB connection and an iPhone. You have to check first which car brand has the features that interest you the most.

5. Price

Another thing you should consider is the budget you have. Many LCGC car brands are quite affordable on the market, you just need to adjust it to the existing budget. Some brands offer higher prices and more advanced features. Choose the brand that best suits you.

Now, one question arises in society: are LCGC cars still in demand in 2023? The answer is yes. Based on data on sales of the best-selling cars in Indonesia in 2022, Honda Brio (RS and Satya) occupies the first position for the most sold car brands with 61,025 units. Honda Brio is the LCGC car brand that is most in demand by consumers. Several well-known car manufacturers such as Honda and Daihatsu are also still optimistic about sales of LCGC cars in 2023. This is due to the large number of first time buyers who want to own cars and the effect of rising fuel prices. Although prices are starting to increase, there are still many consumers who want to buy fuel-efficient LCGC cars to reduce gas costs.

So, that's an explanation of what an LCGC car is, specifications and tips for choosing an LCGC car. After knowing the advantages and disadvantages of LCGC cars, you can determine the type of LCGC car you will buy or rent. If you want to rent a fuel-efficient car, an LCGC car is the right choice. Now, you don't have to bother looking for a car rental place with the best price and quality.

MPM Rent provides the best car rental services in major cities in Indonesia, such as Jakarta, Bandung, Makassar, Surabaya and other big cities. There are more than 13,000 vehicles with various makes and types. You can rent a car for personal needs or office needs at MPM Rent. Please contact the nearest car rental service in your city.

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