According to a report by Reuters, BYD Indonesia’s USD1 billion (approx. RM4.5 billion) electric vehicle (EV) plant is set to be completed by the end of 2025. The plant is a significant move in the Chinese carmaker’s bid to challenge the Indonesian market, where Japanese marque’s reign supreme.
Construction of BYD’s new plant started in June 2024, shortly after the announcement made on social media by Indonesia’s Coordinating Minister of Maritime and Investment Affairs, Luhut Binsar Pandjaitan.
In a joint interview with Reuters and CNBC Indonesia, BYD Indonesia Managing Director Eagle Zhao says that the long-term plan for the new plant built in Indonesia will be the export of EV units to neighbouring countries. The new plant based in Subang, West Java will have a production capacity of 150,000 EV units built annually.
Zhao says that the new plant will start producing its first batch of EV units shortly after the construction is complete. “Every single progression of our local manufacturing is quite smooth and also on the track. We will keep our commitment, which is by end-2025, we will complete the construction works,” Zhao added.
The RM4.5b investment will play a major role in helping Indonesia achieve its goal of producing 600,000 EVs domestically by 2030.
Currently, there are four BYD EV models being sold in Indonesia: The Seal, Atto 3, Dolphin, and M6 as the bestselling model of the entire year. Zhao adds that more models will be introduced in the country this year, however the exact number of models still remains unknown.
Additionally, BYD is also set to launch the premium Denza brand in Indonesia today.
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Nearer to home, BYD currently offers the Seal, Atto 3, Dolphin, M6, and Sealion 7 in Malaysia. Meanwhile, the Denza brand is set to be released sometime in Q1 2025, with the Denza D9 now already open for bookings.
Despite its position as the number one EV brand in Malaysia with 8,570 vehicles delivered to customers last year, BYD has no official plans yet to produce their vehicles locally. With the tax exemptions expiring by the end of 2025, though, that position might soon change.
READ: Denza D9 confirmed for Malaysia – BYD’s EV luxury MPV to debut in Q1 2025
