Two Electric Car Brands Will Build Factories in Indonesia

Two Electric Car Brands Will Build Factories in Indonesia. 25 four-wheeled automotive brands are participating at the IIMS 2024 automotive exhibition. Two of them are new automotive brands entering the Indonesian market, namely Vinfast from Vietnam and Build Your Dream or BYD from China.

These two 4-wheeled vehicle brands will focus on making and selling electric vehicles in Indonesia. Vinfast from Vietnam was founded in 2017 and is under the auspices of Voup which focuses on Vietnam’s industrial sector.

CEO of Vinfast Indonesia Tranakui stated that the support of the Indonesian government was one of the reasons for Vinfast’s entry into the national automotive market. “Indonesia is one the Market. I think in terms of scale already have scale there the market you know.” Tranakui said.

In January 2024, President Joko Widodo also visited the VF factory in Hong Vietnam. In order to inspect the factory and invite Vinfast in Indonesia. Vinfas claims to be ready to build an electric car assembly factory in Indonesia. The initial production capacity is around 50,000 units per year. With an investment value reaching 7 trillion Rupiah.

Apart from VF, there is also Build Your Dream or BYD, which is an automotive company specializing in electric vehicles since 1995 in China. BYD Indonesia president director Igle Zaw at IIMS stated his interest in entering the Indonesian market. The reason is that there is still a niche for electric vehicle sales that can be filled by manufacturers such as BYD. “Of course as the largest economic and population countries in Asia.

Indonesia is just a matter of time for this kind of revolutions, we believe this is also our real obligation and responsibility to transfer to introduce the very new, the very latest technology.” said Igle to journalists. Igle said that the investment they will make to build an electric vehicle manufacturing factory in Indonesia will reach 20.3 trillion Rupiah. With a production capacity of 150,000 units per year.

After inspecting the IIMS exhibition area, President Joko Widodo stated that Indonesia is committed to leading the production of electric vehicles by utilizing the products of automotive manufacturers who have opened factories in Indonesia. “We encourage everything so that the goal is, everything is produced in Indonesia. All brands produce in Indonesia because we have the power of EV batteries.” said Joko Widodo on the sidelines of the meeting.

These new automotive brands from China and Vietnam in the Indonesian automotive market will influence the competitive climate and massive vehicle technology transfer in Indonesia. Anton Jimmi as marketing director of PT. TAM said “I think competition has always been a positive thing, because we want to improve the national automotive industry so the hope is not just CPU cars but domestically produced cars, which will develop in the future. And this will provide choices for consumers and us Don’t worry.

Apart from that, Dian Asmahani from the Wuling Motors brand and marketing director said, “The more players there are, the more car choices there will be for consumers, what is clear is that Indonesian consumers will benefit. Because we definitely have competition, and when we compete we will definitely bring out the best innovations, produce the best products and innovations. How do we produce better products for the Indonesian people.”

With the increase in new brands and especially two electric car new brands in the national automotive market, we must prepare strategies to gain the trust of Indonesia.