Chery signs LOI for EV assembly line in Indonesia, Omoda E5 set to be locally assembled



Chery Sales Indonesia, the distributor for the Chinese marque in the archipelago, recently signed a letter of intent (LOI) with the Indonesian government to jointly “support the acceleration of the formation of the Battery-Based Electric Motor Vehicle ecosystem”, including the setting up of a production facility for the localisation of EVs in the country in compliance with Indonesia’s Domestic Component Level requirements.

The signing of the LOI comes just one year after Chery officially returned to the Indonesian market.

Commenting on the signing of the LOI, Chery Sales Indonesia Executive Vice President Qu Jizong said, “The signing of this LOI is a form of confirmation of Chery’s commitment to contribute to the Indonesian automotive industry.”

“Therefore, we will carry out our commitment to invest through the production of electric vehicles in Indonesia and distribution to right-hand drive countries,” Qu added.

RELATED: Chery Omoda 5 EV to be locally assembled in Indonesia starting 2024

In a press release, the company says that it is also committed to increase its local talent development efforts, specifically in the area of research and development, and technology, in a bid to “meet, or even exceed, industry standards in terms of quality and safety” as it prepares to make Indonesia its production and export centre for “environmentally friendly vehicles” for the region.

Although the exact car model was not specifically mentioned, it is widely understood to be the Chery Omoda E5, which was first shown in the country at the Gaikindo Indonesia International Auto Show (GIIAS) earlier this year, and incidentally also previewed to Malaysian media yesterday. The model was also teased in the backdrop during the signing ceremony.

Indonesian publication AutonetMagz reports that order books for the electric SUV has already been opened since August, and will soon be launched in the Archipelago before February 2024 with local assembly (CKD) status.

According to a spokesperson of Chery Malaysia, the Chery Omoda E5 is earmarked for a Malaysian launch sometime around March 2024 – but it will be launched in a fully imported (CBU) form, with the model sourced from China.

Both Malaysia and Indonesia are amongst the first right-hand drive countries in the world to receive the model – a show of commitment to the ASEAN markets, the spokesperson said.

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