BYD expands EV presence in Indonesia with new plant

Chinese automaker Build Your Dreams (BYD) is planning to complete its US$1 billion plant in Indonesia by the end of 2025, with an annual production capacity of 150,000 electric vehicles. The plant is under construction at an industrial complex located in Subang, West Java.

Eagle Zhao, BYD's president director in Indonesia, said in a joint interview with Reuters and CNBC Indonesia on Monday (20 January) that the plant's long-term strategy focuses on the export market. Each phase of local production is progressing smoothly and as planned, with the goal of finishing construction by the end of 2025, he added.

BYD has received temporary approval to import its cars into Indonesia without incurring import duties due to the investment. This decision aligns with the Indonesian government's initiative to promote the electric vehicle industry, which aims for a domestic production target of 600,000 electric vehicles by 2030.

According to the report, BYD sold 15,429 units during its first year of operations in Indonesia in 2024. From January to November, the company led the market for battery-powered electric vehicle sales, capturing around 36% of the market share. Zhao said he expected the new plant will begin producing cars shortly after the construction is completed.

To further expand its presence in Indonesia's automotive market, BYD launched its premium brand DENZA in the region on Wednesday (22 January). DENZA is a joint venture between BYD and Mercedes-Benz. Zhao said during a launch event in Jakarta that while the overall automotive market experienced a slowdown last year, the electric vehicle (EV) market in Indonesia continued to grow substantially.

Liu Xueliang, general manager of BYD Asia-Pacific auto sales division also said during the event that the company plans to introduce more new models to Indonesia this year. 

MARKETING-INTERACTIVE has reached out to BYD for more information. 

Don't miss: Indonesia in talks to attract Tesla and BYD with new incentives

Back in July last year, BYD opened its first EV plant in Thailand, a facility valued at US$490 million, with an annual production capacity of 150,000 units, including plug-in hybrids.

Related articles:

Indonesia in talks to attract Tesla and BYD with new incentives
AS Watson transitions its delivery fleet to electric vehicles to fight climate change
What are the media and social stats like around Jaguar's Type 00 EV model unveil?