Chinese electric automaker BYD has finally confirmed plans to establish a local electric vehicle production in Indonesia, further boosting its global production capacity amid the shift to clean mobility.
About $1.3B in investments in Indonesia
BYD plans to erect its new electric vehicle factory in a 100-hectare plot of land in the Subang Smartpolitan Industrial Area in West Java, according to the press release.
BYD has yet to disclose specific details about the new factory’s production capacity. However, the Coordinating Minister for Economic Affairs, Airlangga Hartarto, previously announced that the annual production output will be 150,000 electric vehicles.
The Indonesian Minister also revealed that BYD is investing approximately $1.3 billion in the new EV factory in the country.
BYD’s local footprint
BYD officially penetrated the Indonesian market with its electric car offerings in January 2024.
Before that, BYD had already supplied its fleet of electric buses and cabs in Indonesia through its local partners. It delivered its first batch of 30 buses to Jakarta-based public transit operator Transjakarta on March 8, 2022.
In March 2023, Indonesia’s BYD electric bus distributor, VKTR Group, delivered 22 K9 electric buses to local bus firm Mayasari. Indonesia’s largest cab operator, Blue Bird, announced plans to acquire 80% of its EVs from BYD in May of the same year.
In mid-January 2024, BYD finally introduced the new Seal electric sedan, Dolphin electric hatchback, and Atto 3 electric SUV in the Indonesian market.
Unstoppable manufacturing expansion
BYD has already established local electric vehicle production plants in various countries, including Thailand, Uzbekistan, Brazil, and Hungary.
In that sense, the upcoming factory in Indonesia will become the Chinese electric automaker’s fifth local production beyond China.
However, BYD seems to have difficulty bringing its domestic success overseas. Previous reports suggested that BYD’s exports only accounted for 8% of its total vehicle sales, according to Electrive.
BYD set an export target of at least 500,000 EVs in 2024 and 1 million by 2025.
BYD plans to kick off the new factory’s construction as early as this year, while operations will launch in January 2026.
