Low Cost Green Car (LCGC) (Indonesian: Kendaraan Bermotor Roda Empat Hemat Energi dan Harga Terjangkau (KBH2), lit.
'Energy Efficient and Affordable Four-Wheeler Motor Vehicles') is an Indonesian automobile regulation which exempts low-cost and energy-efficient cars from luxury sales tax to ensure affordability, provided that they are assembled locally with a minimum amount of local components.
The main points of the regulation are:[4] Toyota, Daihatsu, Suzuki and Honda are set to produce a combined 500,000 LCGCs a year with a predicted total investment of $1.8 billion in Indonesia by the end of 2012, after the government has agreed to exempt the LCGC from the luxury tax to boost domestic sales.
The plant would assemble 4,000 units of the Toyota Avanza and/or Daihatsu Xenia per month in the first run and would produce 10,000 units of cars per month, including the LCGC Toyota Agya and Daihatsu Ayla when the rule had been released.
Initial exports of the Daihatsu Ayla (as the Toyota Wigo) had been done in February 2014 to the Philippines.