Abstract
The rise of all types of electric vehicles (xEVs) is reshaping the global automotive sector, marking a new era of electric mobility (eMobility). While existing research predominantly explores the transition towards eMobility from the perspectives of automakers, governments, and users, a notable gap exists regarding the role of internal combustion engine (ICE) component manufacturers. This research aims to examine the transformative journey of the Indonesian automotive industry, specifically focusing on the strategic responses of Indonesian ICE component manufacturers towards eMobility. This study employs a multi-level perspective (MLP) approach through 12 semi-structured interviews with stakeholders representing government bodies, associations, automakers, academia, startups, and ICE component manufacturers. This research sheds light on stakeholders’ perceptions and actions in the transition to eMobility. The findings reveal various factors influencing transition, including current low xEV demand, companies’ perceptions of xEVs, huge investments, changes in the supply chain, technological capabilities, and government policies. This research provides an overview of the strategies for ICE component manufacturers, along with their risks and advantages. This research also recommends two policies for the Indonesian government: a gradual transition and more support for local xEV and component manufacturing.
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