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The LCGC, Are They Still Affordable?

News2022-11-18 11:00:00
Source : Suzuki Indonesia

The Low Cost Green Car or LCGC is identical with affordable price. However, is the price still reasonable for everybody? 

The LCGC emerged in the automotive market in 2003, during the reign of President Susilo Bambang Yudhoyono. The objective of LCGC production is to meet the need for eco-friendly transportation. This policy is regulated in the Regulation of Minister of Industry No.  33/M-IND/PER/7/2013 concerning the Development of KBH2 (Four-wheeled Motorized Vehicles that Save Energy at Affordable Prices). 

The presence of LCGC is also expected to push and develop the national automotive industry — especially the car components industry —  hence, the automotive industry can create competitive drive motors, transmissions and axles. When the spare parts are made in Indonesia, the price is expected to be more affordable. Furthermore, since it is included as a government program, the LCGC is given zero percent Sales Tax on Luxury Goods or PPnBM.  

Since the appearance of the LCGC program, you can buy a car at a very reasonable price. Some of the cars are sold under IDR 100 million. However, nowadays, LCGC cars are no longer affordable. One of the factors is the change in PPnBM. Initially, the PPnBM is 1%, but now it change to 2%.  

From  July 2022, cars that are classified as affordable cars will start to increase in price. The increasing price varies, it starts from IDR 1 million up to IDR 7 million. For instance, Daihatsu Ayla is sold at IDR 110 million (an increase of IDR 1.8 million) for the lowest type. Meanwhile, the highest type is sold at IDR 169.5 million (an increase f IDR 2.3 million). 

There is also an increasing price on the other LCGC namely Honda Brio Satya, the highest type whit  a CVT transmission is increased to IDR 186.4 million (previously IDR 184 million). Looking at the current LCGC price, one of the solutions to get a cheaper LCGC is by buying second-hand LCGC.  A lot of LCGC cars are sold under IDR 100 million. 

Before buying the LCGC cars, either new or second-handed, it is better for you to know the advantages and the disadvantages of LCGC. Let’s dive into the discussion below! 

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The Advantages of LCGC

Besides being priced at a low price compared to the other cars, LCGC owns several advantages namely:

1. Fuel economy

Just like the name pinned to the car, LCGC is indeed produced as an eco-friendly car. Generally, the LCGC only consumes 1 liter of fuel for 20 km so these cars are suitable for driving in the city which frequently has bad traffic jams. 

2. Long durability

A low price does not always mean low quality. That price is the perfect depiction of the LCGC cars. Although the price is classified as inexpensive, the durability of the cars is long-lasting. 

The result of the performance test is also great. For instance, Toyota Agya is equipped with a 1,200 cc DOHC 16V 4-cylinders engine. 

The durability can last even longer if you give the car routine maintenance and the best spare parts.

3. Have compact dimension

LCGC is known for its compact dimension. The car body built is relatively smaller than the other type of cars. It makes the car more dynamic and you can drive it in a narrow alley.

4. Low maintenance cost

When you buy your dream car, do not forget about its maintenance cost. Fortunately, the cost of LCGC maintenance is relatively inexpensive. You just need to spend around Rp 1.7 million when you bring it to the official repair shop.

5. Easy to be customized 

To give a kind of personal touch to your car, you can customize the car according to your liking. There are a lot of repair shops that specialize in LCGC customization services. 

6. The resale value is relatively high

Not just the buying price, you also need to consider the resale value when you buy a car. 

One of the advantages of LCGC is that this type of car is likely to have a high resale value. When this article is being written, the resale value is at about Rp 120 - Rp 150 million. The resale price will vary according to the car’s type and condition.

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The Disadvantages of LCGC

Behind its superb advantages, LCGC also has some flaws which you better know before deciding to buy it. 

1. Lower power 

The LCGCs generally have an engine with a capacity of 1,000 - 2,000 cc. Because of the engine's low capacity,  the power of the car will be lower than non-LCGCs.

2. The weight is too light

If you stretch your neck, you may find some LCGC lovers. They love LCGC due to its petite dimension because it is easier for them to drive the car. 

However, the car's small body-built makes it owns lighter weight so it is likely to be shaky. 

The drivers will easily lose the steering control too when they ride it at high speed. It will be dangerous for both the drivers and passengers.

3. Smaller trunk 

One of the main problems of the LCGC is its small trunk so you cannot bring a large amount of luggage. 

4. Smaller seat capacity

Not only the trunk, but the cabin of LCGC is also smaller than the other cars. With its petite size, generally, the LCGC can only carry 5 passengers.

5. Limited features

Since the producers need to press the production fee, they need to omit some features from The LCGC cars. One of the features omitted from these cars is the safety system and the ABS braking system. 

List of LCGCand The Prices

If you are looking for LCGC, we have a great list of recommended cars for you: 

1. Honda Brio Satya

Honda Brio is one of the most in-demand LCGCs. There are some factors that make this car heavily wanted in the automotive market namely its compact dimension, luxurious interior, and complete safety system. This car is also fuel efficient since it is equipped with an i-VTEC 1.2L engine.

One liter of fuel will take this car up to 16,6 km for city driving. Meanwhile, for toll road driving, one liter of fuel will reach 22.6 km. 

Equipped with an i-VTEC 1.2L engine, it can produce horsepower up to 90 PS and maximum torque of 110 Nm.

The following is the list of the newest price of Honda Brio Satya:

  • Brio Satya S M/T - Rp 156.900.000

  • Brio Satya E M/T - Rp 170.500.000

  • Brio Satya E CVT - Rp 186.400.000

2. Toyota Agya

The newest Toyota Agya looked more sporty rather than its previous generation. No wonder it becomes the youngster's favorite choice. Further, this new Toyota Agya is loved due to its flexibility, so it is easier to be maneuvered. 

This car comes with a 998 cc and 1,197 cc engine. It is also equipped with safety features Dual SRS Airbags and ABS brake in the New Agya 1.2. For fuel consumption, Toyota Agya 1,197 cc can reach 15.1 km/liter on city roads and 20.7 km/liter on toll roads. 

Finally, here is the pricelist for the New Toyota Agya: 

  • Agya 1.2 G M/T STD - Rp158.500.000

  • Agya 1.2 G A/T STD - Rp172.000.000

  • Agya 1.2 GR Sport M/T - Rp163.900.000

  • Agya 1.2 GR Sport A/T - Rp179.700.000

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3. New Toyota Calya

LCGC is always associated with small cars. However, some car producers like Toyota and Daihatsu also produce MPV cars which are categorized as LCGC. With a wider cabin, this car grabbed the Indonesian automotive market’s attention. 

One of the LCGC MPV cars that are in high demand is Toyota Calya. This car is equipped with a Dual VVT-i-4-cylinder DOHC 16 valve with a capacity of 1,197 cc which produces 88 PS of horsepower. 

The new Toyota Calya comes with 7 seaters so that it is suitable to be a family car and these are the list of the type:

  • Calya 1.2 E M/T STD LOW  - Rp156.000.000

  • Calya 1.2 E M/T STD - Rp158.600.000

  • Calya E M/T - Rp161.500.000

  • Calya G M/T - Rp167.000.000

  • Calya G A/T - Rp181.100.000

4. Daihatsu Ayla

Daihatsu is a car producer that is well known for giving affordable prices.

One of the cars produced by Daihatsu is called Daihatsu Alya and it is categorized as an LCGC car. 

Besides having an affordable price, Daihatsu Alya also has great engine performance and the best fuel efficiency rate in its class. Generally, this car can reach 14-15 km/liter on city roads and 18-20 km/liter on toll roads. 

When you compare it to the other LCGCs, Daihatsu Alya will be the one that is most wallet-friendly in Indonesia. 

However, affordable price means lower production costs. Therefore, the features of the car are quite limited. 

How about the quality of the engine? You do not need to be worried because Daihatsu always equipped its car with a high-quality engines.

Here is the price list of Daihatsu Ayla:

  • Ayla 1.2 X A/T - Rp155.500.000

  • Ayla 1.2 R A/T - Rp165.250.000

  • Ayla 1.2 R Deluxe A/T - Rp169.250.000

  • Ayla 1.0 X A/T - Rp142.750.000

  • Ayla 1.0 X Deluxe A/T - Rp150.200.000

  • Ayla 1.2 X M/T - Rp145.300.000

  • Ayla 1.2 R M/T - Rp152.350.000

  • Ayla 1.2 R Deluxe M/T - Rp156.350.000

  • Ayla 1.0 X M/T - Rp133.500.000

  • Ayla 1.0 X Deluxe M/T - Rp140.850.000

  • Ayla 1.0 D+ M/T - Rp122.500.000

  • Ayla 1.0 D M/T - Rp110.000.000

5. Daihatsu Sigra

The next recommended LCGC is awarded to Daihatsu Sigra. While Toyota has Calya for its LCGC version, Daihatsu has Sigra. Daihatsu adopts the same design as Toyota since they have similar platforms. 

Compared to Calya, Sigra comes with various models so the price also varies. Moreover, this car is also categorized as a fuel-economy car. For a liter of gasoline, Sigra can reach 14 km. Hence, we can say that Sigra is one of the best family car choices. 

The following is the price list of Daihatsu Sigra:

  • Sigra 1.2 R A/T DLX - Rp174.700.000

  • Sigra 1.2 R A/T - Rp170.900.000

  • Sigra 1.2 R M/T DLX - Rp160.000.000

  • Sigra 1.2 R M/T - Rp156.200.000

  • Sigra 1.2 X A/T DLX - Rp168.300.000

  • Sigra 1.2 X A/T - Rp162.800.000

  • Sigra 1.2 X M/T DLX - Rp155.200.000

  • Sigra 1.2 X M/T - Rp149.600.000

  • Sigra 1.0 M M/T - Rp140.000.000

  • Sigra 1.0 D M/T - Rp129.500.000

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