19-1-2024 (JAKARTA) Chinese electric vehicle maker BYD has announced plans to construct a $1.3 billion auto plant in Indonesia, positioning the company to become a leading EV brand in the country’s burgeoning market.
The proposed 150,000-vehicle facility would be BYD’s sixth overseas, following recent plants in Brazil, Mexico and elsewhere. The move aligns with BYD’s strategy of expanding manufacturing closer to key foreign markets.
At a Jakarta launch event for three new EV models, a top Indonesian minister confirmed BYD’s intentions to invest $1.3 billion in the local plant. BYD aims to commence construction this year.
“We envision building an EV ecosystem and fostering development in Indonesia,” said BYD’s Indonesia chief Eagle Zhao, underscoring the company’s long-term commitment.
BYD seeks to surpass current top-selling EVs like Hyundai’s Ioniq 5. The Warren Buffett-backed company overtook Tesla in global EV sales last quarter.
Resource-rich Indonesia has been attracting automakers to set up local operations through incentives and its vast nickel reserves, critical for EV batteries. BYD is also a major battery manufacturer eager to integrate supply chains abroad.
The push aligns with China’s broader export shift as it becomes the world’s largest auto exporter. But rising trade barriers have prompted companies like BYD to situate manufacturing closer to overseas buyers.
Beyond Asia-Pacific, BYD exported EVs to Europe, Africa and elsewhere in 2022, comprising half its 243,000 international vehicle sales. Long-term targets could see 2 to 3 million yearly overseas sales, excluding the U.S. and Europe.
This week, BYD’s first cargo vessel for exporting EVs departed China, underscoring the carmaker’s global ambitions. With the new Indonesian plant, BYD aims to cement itself as a leader in Southeast Asia’s promising EV market.
