According to data released by the Association of Indonesia Automotive Industries (GAIKINDO) on July 19, electric vehicle (EV) sales in Indonesia surged by 267% in the first half of this year, reaching 35,749 units. Chinese automotive brands accounted for 93% of the total sales, significantly contributing to the growth of Indonesia's automotive industry and its transition to electric mobility.
According to GAIKINDO, BYD leads the sales of Chinese-brand EVs in Indonesia, followed by other major brands such as SAIC-GM-Wuling, Chery, and GAC Aion. The popularity of Chinese EV brands in Indonesia is attributed to a combination of factors, including product competitiveness, local market adaptation, and policy alignment.
In terms of product competitiveness, Chinese automakers have made continuous breakthroughs in key technologies such as electric platforms, driving range, and charging efficiency, ensuring that their products meet the needs of Indonesian consumers. Additionally, China's mature industrial chain has significantly reduced production and supply chain costs, giving Chinese EVs a significant price advantage, making them a good fit for the local consumer market.
Regarding localization, Indonesia, with the world's largest nickel reserves, possesses critical minerals required for manufacturing electric vehicles and power batteries. This has attracted seven Chinese automakers, including BYD and Geely, to invest IDR 150 trillion (approximately USD 9.25 billion) from 2024 to March 2025, with a combined annual production capacity of 280,000 vehicles. Chinese battery and materials companies, such as CATL and BTR New Material, are also investing in manufacturing plants in Indonesia. The localization of production and collaboration by Chinese companies has not only reduced import tariff costs but also enabled them to adjust their product strategies to better suit the Indonesian market.
In terms of policy alignment, Indonesia's automotive industry is accelerating its shift to clean energy vehicles. Chinese EV brands are not only “product suppliers” but also support Indonesia's electric mobility infrastructure through technology transfer and talent development (such as participating in local battery plant construction and sharing EV manufacturing experiences). Kumala, Secretary-General of GAIKINDO, stated that Indonesia needs to focus on developing its battery component industry, particularly the core components like electric motors and battery management system semiconductors, which are still imported. The Chinese automotive parts industry is strong, and local Indonesian companies need to learn from and collaborate with Chinese counterparts.