Many automakers, such as BYD, are planning to invest in electric vehicle production in Indonesia to penetrate the Japanese-dominated market.

Main content Hide / ShowChinese car manufacturers are `busy` building factories in IndonesiaIndonesia – a `fertile` land for the electric car sector. Does VinFast have more competitors in Indonesia?

According to Nikkei Asia, Chinese electric car manufacturers BYD and Neta Auto are preparing to challenge Japan’s dominance in the Indonesian auto market, with the announcement of investment plans and introduction of new car models.

A few days ago, Indonesian real estate developer Suryacipta Swadaya announced that BYD will build a factory worth $1 billion on an area of 1.08 km² in West Java province.

Eagle Zhao, chief executive officer of BYD Motor Indonesia, said: `We are confident that the soon-to-be-built factory will accelerate the growth of the Indonesian auto industry and the transition to clean energy, while

As Southeast Asia’s largest auto market, Indonesia sold about 1 million new vehicles in 2023. Japanese brands such as Toyota and Mitsubishi control more than 90% of the market, but automakers

`This year, Neta Indonesia is committed to increasing investment in Indonesia by starting domestic production,` Jerry Huang, chief executive officer of Neta Indonesia, said on Tuesday at a press conference at the Indonesia auto show.

In November, the company signed an agreement with Handal Indonesia Motor to assemble electric vehicles in Indonesia.

More than 80 brands, including motorcycle manufacturers and spare parts businesses, participate in the ongoing Periklindo Electric Vehicle Exhibition in Indonesia.

A Dolphin costs about 425 million rupiah (equivalent to 662 million VND), less than half the global average price for an EV but still out of reach for most consumers in a country with average wages.

Neta, another newcomer at the Periklindo show, launched the NETA V-II model, priced from 200 million rupiah to 300 million rupiah (converted price from 313 million VND), making it the cheapest car model in the market.

Huang, the chief executive officer, said: `NETA V-II is launched as the beginning of our commitment to the Indonesian market and will become the first locally assembled NETA product.`

Demand for electric vehicles in the US and other markets is slowing, as fierce competition leads to price wars in countries like China and Thailand.

However, BYD sales representatives at the show were optimistic about the Indonesian market, saying demand is growing `due to interest from young consumers and families.`

He added that the company believes the electric vehicle market in Indonesia will continue to grow and mentioned the government’s incentive program is helping to improve demand for electric vehicles.

Neta’s Herman Tri Putra said, `I think the Indonesian situation is different from the US and Europe because we already have battery materials like nickel, and the government fully supports the growing electric vehicle industry.`

Indonesian President Joko Widodo’s government is leveraging Indonesia’s nickel resources to attract investment from battery and electric vehicle manufacturers, making the country an integral part of the global supply chain and promoting

In addition to new investment commitments from the two Chinese companies, South Korea’s Hyundai Motor began large-scale production at a factory in Indonesia in March 2022. In August 2022, China’s Wuling Motors also

Meanwhile, Japanese car manufacturers continue to focus on hybrid cars instead of switching to fully electric cars.

Electric vehicle sales in Indonesia rose nearly 70% last year, to 17,051 vehicles from 10,327 vehicles in 2022, according to data from the Indonesian Automotive Industries Association.

Vietnamese electric car company VinFast officially opened for sale the VF e34 electric car model in Indonesia at the end of March for 315 million IDR (equivalent to 493 million VND), excluding batteries, and introduced a battery rental policy to

Previously, on February 15, 2024, at the Indonesia International Motor Show (IIMS) 2024, VinFast made a strong impression with the display of a series of electric vehicle products from the A-SUV to E-SUV segments.

VinFast is also focusing on developing the charging station system in Indonesia, as part of its plan to expand the global charging station network through the establishment of V-GREEN Global Charging Station Development Company.