Subang, Indonesia Sentinel — China’s largest electric vehicle (EV) manufacturer, BYD, has announced its ambitious plan to complete a $1 billion (IDR 16.38 trillion) factory in Indonesia by the end of 2025.
This move underscores the company’s strong commitment to dominating the EV market, particularly in a region long dominated by Japanese automakers.
Factory Construction Plans in Subang, West Java
Eagle Zhao, President Director of BYD Indonesia, stated in an interview with Reuters and CNBC Indonesia that the long-term strategy for the factory is primarily focused on exports.
“The progress of our factory construction is proceeding smoothly and on schedule. We remain committed to completing it by the end of 2025,” Zhao said.
The factory, located in the Subang industrial zone of West Java, will have an annual production capacity of up to 150,000 EV units.
Import Duty Exemptions to Boost EV Demand
As part of efforts to attract investment and stimulate EV demand, the Indonesian government has introduced policies allowing BYD to import vehicles duty-free.
This initiative aims to enhance the competitiveness of the domestic EV market and supports the government’s target of producing 600,000 EVs domestically by 2030.
BYD’s Rapidly Growing Sales in Indonesia
In its first year of operations in Indonesia, BYD sold 15,429 EVs, according to data from the country’s automotive association. From January to November 2024, BYD led the market in battery-powered electric vehicles, capturing approximately 36% market share.
Zhao expressed optimism that the new factory will be ready to roll out its first locally assembled EVs once construction is completed.
BYD’s EV Models Available in Indonesia
Currently, BYD has introduced four EV models in Indonesia:
- Seal (sedan)
- Atto 3 (SUV)
- Dolphin (hatchback)
- M6 (seven-seater MPV)
Among these, the M6 was the best-selling model in Indonesia last year.
Zhao also revealed that BYD plans to launch more models in 2025 to accelerate sales growth. One notable addition is Denza, BYD’s premium brand, set to debut in Indonesia this week.
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Global Sales Surge and Expansion in Southeast Asia
BYD’s global sales exceeded expectations in 2024, with over 4 million units sold. The company is strengthening its presence in Southeast Asia, competing aggressively against dominant Japanese and Korean brands.
In 2024, BYD inaugurated its first Southeast Asian EV factory in Thailand, with an investment of $490 million and an annual production capacity of 150,000 units, including plug-in hybrid vehicles.
In Singapore, BYD also outperformed Tesla in sales during the first half of 2024, solidifying its foothold in the region’s growing EV market.
(Becky)
