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Chinese electric car makers BYD and Neta Auto are poised to announce new investment plans and unveil their latest models at the Jakarta auto show, challenging Japan's dominance in the Indonesian car market.
Indonesian real estate developer Suryasipta Swadaya announced last week that BYD will build a $1 billion factory on 1.08 square kilometers of land in West Java province. Construction is expected to begin in August and operations are expected to begin in January 2026. The company said the plant's production capacity will be announced at a later date.
“We are confident that the facility being built will facilitate the growth of Indonesia's automotive industry and the transition to clean energy, while especially supporting the economy of the surrounding region,” said Eagle Zhao, Managing Director of BYD Motor Indonesia. Ta. In a statement.
Approximately 1 million new cars were sold in Indonesia last year, making it Southeast Asia's largest car market. Japanese brands such as Toyota and Mitsubishi control more than 90% of the market, but Chinese automakers are getting into EVs.
“This year, Neta Indonesia is committed to increasing investment in Indonesia by starting local production,” Neta Managing Director Jerry Huang said at a press conference at last week's auto show. Ta.
In November, the company signed a contract with Handar Indonesia Motor to assemble EVs in Indonesia. It is scheduled to begin operations in the second quarter of this year.
This article is from Nikkei Asia, a global publication with a uniquely Asian perspective on politics, economics, business and international affairs. Our correspondents and external commentators from around the world share their views on Asia, and our Asia 300 section provides an in-depth look at the 300 largest and fastest-growing publicly traded companies in 11 countries outside Japan.
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More than 80 brands participated in the Periklind Electric Vehicle Show, including motorcycle manufacturers and parts companies. Periklind (Indonesia Electric Vehicle Industry Association) held its first EV exhibition in 2022. This year, the venue's floor space is more than double what it was last year.
Debuting at the Jakarta EV Show, BYD announced the Dolphin. Deliveries from China are scheduled to begin in July, with prices around 425 million rupiah ($26,500), half the global average for EVs but out of reach for most people. According to August statistics from the Central Bureau of Statistics, the average monthly salary of consumers in the country is about Rp 3.18 million.
Neta, another newcomer to the Jakarta EV Show, unveiled the Neta V-II, which will be the cheapest model in its Indonesian lineup, priced between Rp 200 million and Rp 300 million.
“Neta V-II was born as the beginning of our commitment to the Indonesian market and was the first Neta product to be assembled locally,” Huang told reporters.
Demand for EVs is slowing in markets such as the United States, and intense competition is leading to price wars in countries such as China and Thailand.
However, a BYD sales representative expressed optimism about the Indonesian market, saying demand is growing “driven by young consumers and families.”
He added that the company is confident that Indonesia's EV market will continue to grow, citing government incentive programs.
Herman Tri Putra, a sales consultant at Neta, said, “I think the situation in Indonesia is different from the United States and Europe, because Indonesia already has battery materials such as nickel, and the government is trying to support the developing EV industry.'' That's because we fully support them.”
Indonesian President Joko Widodo's government has leveraged Indonesia's nickel resources to attract investment from battery and electric vehicle producers, making the country an integral part of global supply chains and fostering homegrown manufacturers. President-elect Prabowo Subianto is expected to maintain Widodo's EV policy.
Apart from the latest investment commitments by two Chinese automakers, South Korea's Hyundai Motor Co. has begun full-scale production at its Indonesian plant in March 2022. In August 2022, China's Wuling Motors began operating an assembly line for the Air EV model in Cikarang in the west. Java.
Meanwhile, Japanese automakers are sticking with hybrid vehicles rather than moving to fully electric vehicles.
Sales of battery electric vehicles in Indonesia increased by nearly 70% last year, from 10,327 units in 2022 to 17,051 units, according to wholesale data from the Indonesia Automobile Industry Association. The Indonesian hybrid car market is also expanding, with sales volume expected to reach approximately 54,000 units in 2023, an increase of 5.2 times.
a version This article was first published in Nikkei Asia on May 1. ©2024 Nihon Keizai Shimbun, all rights reserved.
