On January 18th, BYD expanded its market footprint in Southeast Asia by launching three EV models in Indonesia: the Dolphin, Seal, and ATTO 3 (Yuan Plus). This move signifies a further step in BYD’s global expansion strategy.
In a significant development, Airlangga Hartarto, Indonesia’s Coordinating Minister for Economic Affairs, announced at the launch event that BYD plans to invest $1.3 billion in building an automotive factory in Indonesia. This factory is expected to have an annual production capacity of 150,000 units. This investment marks BYD’s fifth overseas EV factory, following their establishments in Thailand, Uzbekistan, Brazil, and Hungary.
Eagle Zhao, President of BYD Indonesia, stated that the company plans to commence construction of these facilities later this year. BYD aims to establish up to 50 sales outlets across Indonesia by the end of 2024.
The Yuan Plus, one of the models introduced, is BYD’s first electric SUV built on the e-platform 3.0. It features a low drag coefficient of 0.29 and can accelerate from 0 to 100 km/h in 7.3 seconds. Under the WLTP standard, its maximum range reaches up to 420 km.
Indonesia has been actively trying to attract EV manufacturers with various incentive measures. The country’s Minister of Industry indicated that the government is considering eliminating import tariffs and value-added tax for businesses investing in local EV factories. “We are optimistic that, if implemented, this will stimulate investment and increase the demand for electric vehicles,” he stated.
Earlier comments from Indonesian officials
Last year, Indonesia’s Minister for Maritime Affairs and Natural Resources mentioned that the government was formulating incentive measures for domestic EV manufacturers, hoping to attract major companies like BYD and Tesla.
As early as July 2023, Indonesia’s Investment Minister, Bahlil Lahadalia, announced that EV manufacturers, including BYD, Wuling Motors, and others, would establish factories in Indonesia. He also revealed that the government contemplated additional tax incentives to attract EV manufacturers.
“Thank God, we have decided to accelerate the investment in electric vehicles. The situation now is that Hyundai, which is already operational, will be joined by BYD, Wuling, and several other automakers in Indonesia,” Bahlil said.
To encourage this investment, the government is preparing a series of comprehensive measures from a regulatory and incentivization perspective, including tax reductions.
Bahlil mentioned that earlier discussions focused on how to compete with other countries, such as Thailand and Malaysia. “If we do not discuss this immediately, we will surely fall behind our neighbors,” he added.
Regarding incentives for purchasing EVs, Bahlil stated that the government would streamline some procedures to make it easier for people to acquire electric vehicles.