BYD to invest RM6.1 billion to build EV manufacturing plant in Indonesia; 50 sales outlets by end-2024

Chinese manufacturer BYD plans to invest US$1.3 billion (RM6.13 billion) for the construction of an EV manufacturing plant in Indonesia, Jakarta Globe reported. This manufacturing plant will have a production capacity of 150,000 units, according to the report.

Alongside construction plans for its manufacturing plant in Indonesia, BYD aims to establish up to 50 sales outlets across the country by the end of this year.

“I appreciate BYD’s commitment to launching battery electric vehicles. I hope this can strengthen the era of electric vehicles, an environmentally friendly ecosystem,” Indonesian coordinating minister for economic affairs Airlangga Hartarto was quoted as saying.

The future EV manufacturing plant in Indonesia will be the fifth overseas EV plant for BYD, following Thailand, Uzbekistan, Brazil, and Hungary, reported Car News China.

BYD to invest RM6.1 billion to build EV manufacturing plant in Indonesia; 50 sales outlets by end-2024

From July 2023, Indonesian investment minister Bahlil Lahadalia announced that EV manufacturers such as BYD, Wuling Motors and more would establish factories in Indonesia, and its government is considering further incentive – such as abolishing import tariffs and value-added tax – for companies investing in EV manufacturing.

Elswhere in the region, the Chinese EV manufacturer had planned for Thailand to be its production base for right-hand-drive versions of its vehicles, both for local consumption in the country as well as for export to other RHD markets such as Australia and Malaysia.

Being one of two nations – the other being the Philippines – which account for almost half of the world’s nickel reserves, Indonesia is a good choice for makers of EVs and their batteries as nickel is a key raw material used in their manufacture.

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