BYD (HKG: 1211, OTCMKTS: BYDDY) is on track to complete the construction of its $1 billion Indonesia plant by the end of 2025, according to a recent report by Reuters. The head of BYD’s Indonesian unit, Eagle Zhao, stated that the planned annual capacity of the plant is 150,000 units, with long-term plans for the export market.
The plant, located in an industrial park in Subang, West Java, will have the capacity to produce 150,000 electric vehicles (EVs) per year. As part of this investment, BYD has been granted a temporary exemption from import duties to ship its cars to Indonesia. This policy is aimed at stimulating demand for EVs in the country while also attracting investments from automakers.
The Indonesian government has set a target to produce 600,000 EVs in the country by 2030. BYD’s investment in the Indonesian market signals its commitment to expanding its presence in Southeast Asia.
In March 2024, Luhut Panjaitan, the coordinating minister of maritime affairs and investment, announced that BYD was enthusiastic about investing in Indonesia, with plans to begin production at the new plant in early 2026. BYD made its entry into the Indonesian passenger car market in January 2024, with the launch of the Seal, Dolphin, and Atto 3 models. Subsequently, in July 2024, the company introduced the M6 electric MPV in Indonesia.
Zhao mentioned that BYD plans to introduce more models in Indonesia this year to achieve rapid sales growth by 2025. The company also plans to launch its premium brand, Denza, in Indonesia in the near future.
In 2024, BYD sold 15,429 vehicles in Indonesia, positioning itself below SAIC Motor’s 25,897 units and above Chery’s 9,191 units, according to Deutsche Bank data.
The completion of BYD’s Indonesia plant by the end of 2025 signifies a significant milestone in the company’s expansion strategy in Southeast Asia. With a focus on sustainable mobility solutions, BYD is poised to play a key role in Indonesia’s transition to electric vehicles and contribute to the country’s efforts to reduce carbon emissions.
