Chinese electric automaker BYD has just announced plans Tuesday to start selling its battery electric vehicle models in the Indonesian market as early as next week, Reuters reports.
This market expansion occurs following Indonesia’s efforts to promote electric vehicle adoption to lower C02 emissions in the transportation sector.
Expansion
BYD will roll out its first electric cars in the Indonesian market next week to accelerate its global expansion.
In hindsight, the Indonesian government initially disclosed the Chinese NEV giant’s potential investment in the country’s emerging electric vehicle industry in early September 2023.
Unfortunately, the global media outlet did not disclose more specific details about BYD’s imminent entry into the country.
Government support
The Indonesian government imposed new policies in early December 2023 that offer tax incentives to automakers planning to import their electric vehicle models in the country until 2025. However, they must commit to developing electric vehicle factories until 2025.
The tax incentives will also be accessible to automakers that already invested in local manufacturing and those planning to boost their EV-related investments.
It essentially eliminates the import duties and the luxury goods sales tax on completely built vehicles imported into Indonesia. It also offers incentives on taxes collected by provincial governments.
Notably, Indonesia originally required automakers to import their vehicles in parts and locally assemble them before imposing the new regulation on December 8.
BYD’s EV sales in 2023
BYD enjoyed record-breaking sales of more than 3 million electric vehicles in 2023, indicating an increase of 62% year-on-year, as reported by Markets Insider.
Of that total, battery electric vehicle models accounted for about 1.6 million units. Meanwhile, plug-in hybrid electric vehicle sales reached 1.4 million units.
Its expansion to the Indonesian market will undoubtedly further boost its electric vehicle sales and delivery figures in the coming years.
Likewise, BYD’s presence in Indonesia will significantly aid the government’s target to produce at least 600,000 electric vehicles by 2030, indicating over a hundred-fold increase from the Q1 2023 record.
