Chinese automakers are making significant inroads into Indonesia's electric vehicle (EV) market with substantial investments. PT Chery Sales Indonesia initiated CKD production of its Omoda E5 EV at PT Handal Indonesia Motor's plant, investing around IDR 250 billion. Recognizing heightened demand, Chery plans to expand production and explore international exports. Build Your Dreams (BYD) aims to invest USD 1.3 billion in establishing an EV manufacturing plant in Indonesia by 2024, having already set up eight showrooms. Wuling Motors invested USD 1.1 billion in a Cikarang plant with a 120,000-unit annual capacity, producing electric models like Air EV, BinguoEV, and soon, Cloud EV. PT Sokonindo Automobile, with an IDR 2.14 trillion investment, manufactures DFSK and Seres EVs in Cikande, Banten, considering future expansions.

Analyst Bebin Djuana predicts heightened market competition, urging existing players to strategize against the aggressive entry of Chinese manufacturers, whose advanced technology and competitive pricing will reshape Indonesia's automotive landscape. In conclusion, the influx of Chinese investments signals a transformative shift in Indonesia's automotive sector, particularly in the burgeoning EV market, necessitating strategic responses from local and international players alike.

Source: https://amp.kontan.co.id/news/produsen-otomotif-china-makin-gencar-investasi-di-indonesia