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Released May 10, 2024 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Chinese car major BYD (Xi'An, China) is to invest US$1.3 billion to build a new electric vehicle (EV) manufacturing plant in Indonesia.
The company has signed a land purchase agreement for a 100-hectare plot of land in the Subang Smartpolitan Industrial Area in West Java, about two hours from the capital city of Jakarta. Construction is set to begin this year, with operations scheduled to start in January 2026. The plant will eventually be able to produce 150,000 cars per year. In January, BYD officially entered the Indonesian car market with the launch of its Seal, Atto 3 and Dolphin models and plans to roll out 50 dealerships by the end of this year. This will be BYD's fifth car manufacturing plant outside of China.
Industrial Info reported at the start of this year on BYD's decision to build its first European first electric car factory in Szeged, Hungary, where the company already has a subsidiary company and operation, BYD Electric Bus & Truck Hungary Kft, which builds electric buses. It plans to invest more than US$550 million to construct the plant in phases near the existing bus operation. It will support the company's aggressive push into the European car market, where it now supplies five EVs: Han, Seal, Dolphin, Tang and Atto 3. It will also be the first plant of its kind built by a Chinese automotive company in Europe. For additional information, see January 8, 2024, article - China's BYD to Build First European Plant. Other plants are located in Thailand, Uzbekistan, and Brazil.
The Subang Smartpolitan industrial area covers more than 2,700 hectares and is located conveniently to major highways connecting to Patimban Harbor, Kertajati International Airport and the capital of Jakarta. Speaking about the Indonesian decision, Eagle Zhao, president of BYD Motor Indonesia, said: "Through various assessments, BYD decided that the Subang Smartpolitan Industrial Area is the right location to develop BYD's EV industry in Indonesia. This industrial area can meet the criteria, both in terms of area, distance, environment and the infrastructure we need, so we are confident that the facilities built will be able to encourage the growth of the Indonesian automotive industry and the transition to clean energy, while also supporting the country's economy, especially the region around the plant."
Today, EV sales in Indonesia--both four-wheeled and two-wheeled--represent just 1% of the market, but the government is actively investing in changing that. Last year, Reuters reported that Indonesia recorded just 15,400 EV car sales and approximately 32,000 electric motorcycle sales. However, the government has ambitious targets of having four-wheeled EV sales hit 400,000 by 2025 and 2 million 2030. To that end, earlier this year it announced new incentives to encourage sales of locally produced and imported EVs, including the removal of luxury tax on EVs for the 2024 fiscal year and import tax until the end of 2025. It is also cutting value-added tax (VAT) from 11% to 1% for EV buyers in 2024.
Indonesia's incentives have played a role in attracting car manufacturers. The government wants a domestic EV industry producing 600,000 EVs per year by the end of the decade. EV makers Hyundai Motor Company (Seoul, South Korea) and China's Wuling (Liuzhou, China) already have plants in the country.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The company has signed a land purchase agreement for a 100-hectare plot of land in the Subang Smartpolitan Industrial Area in West Java, about two hours from the capital city of Jakarta. Construction is set to begin this year, with operations scheduled to start in January 2026. The plant will eventually be able to produce 150,000 cars per year. In January, BYD officially entered the Indonesian car market with the launch of its Seal, Atto 3 and Dolphin models and plans to roll out 50 dealerships by the end of this year. This will be BYD's fifth car manufacturing plant outside of China.
Industrial Info reported at the start of this year on BYD's decision to build its first European first electric car factory in Szeged, Hungary, where the company already has a subsidiary company and operation, BYD Electric Bus & Truck Hungary Kft, which builds electric buses. It plans to invest more than US$550 million to construct the plant in phases near the existing bus operation. It will support the company's aggressive push into the European car market, where it now supplies five EVs: Han, Seal, Dolphin, Tang and Atto 3. It will also be the first plant of its kind built by a Chinese automotive company in Europe. For additional information, see January 8, 2024, article - China's BYD to Build First European Plant. Other plants are located in Thailand, Uzbekistan, and Brazil.
The Subang Smartpolitan industrial area covers more than 2,700 hectares and is located conveniently to major highways connecting to Patimban Harbor, Kertajati International Airport and the capital of Jakarta. Speaking about the Indonesian decision, Eagle Zhao, president of BYD Motor Indonesia, said: "Through various assessments, BYD decided that the Subang Smartpolitan Industrial Area is the right location to develop BYD's EV industry in Indonesia. This industrial area can meet the criteria, both in terms of area, distance, environment and the infrastructure we need, so we are confident that the facilities built will be able to encourage the growth of the Indonesian automotive industry and the transition to clean energy, while also supporting the country's economy, especially the region around the plant."
Today, EV sales in Indonesia--both four-wheeled and two-wheeled--represent just 1% of the market, but the government is actively investing in changing that. Last year, Reuters reported that Indonesia recorded just 15,400 EV car sales and approximately 32,000 electric motorcycle sales. However, the government has ambitious targets of having four-wheeled EV sales hit 400,000 by 2025 and 2 million 2030. To that end, earlier this year it announced new incentives to encourage sales of locally produced and imported EVs, including the removal of luxury tax on EVs for the 2024 fiscal year and import tax until the end of 2025. It is also cutting value-added tax (VAT) from 11% to 1% for EV buyers in 2024.
Indonesia's incentives have played a role in attracting car manufacturers. The government wants a domestic EV industry producing 600,000 EVs per year by the end of the decade. EV makers Hyundai Motor Company (Seoul, South Korea) and China's Wuling (Liuzhou, China) already have plants in the country.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
