Sunita Somvanshi
BYD is building a $1 billion car factory in Indonesia that will make electric vehicles (EVs) more accessible in Southeast Asia. This factory, set to open by late 2025, will make 150,000 electric cars each year. It’s being built in Subang, West Java, creating new possibilities for Indonesia’s automotive sector.
“Everything is going smoothly with our factory construction. We’ll finish it by the end of 2025 as promised,” says Eagle Zhao, who leads BYD‘s work in Indonesia. This shows the project is on track and moving forward.
The factory matters because BYD has already sold 15,429 electric cars in Indonesia during 2024, their first year there. They now control 36% of Indonesia’s electric car market. People can already buy four BYD models: the Seal car, Atto 3 SUV, Dolphin hatchback, and M6 seven-seater, which was their best-selling model last year.
Indonesia’s government is helping make this happen. They’re letting BYD bring in cars without extra taxes for now. The country wants 600,000 electric cars made locally by 2030. This could open up new opportunities in Indonesia’s automotive industry.
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BYD sold over 4.27 million new energy vehicles worldwide last year. That’s almost as many as Tesla. They’re also building another factory in Thailand that will make 150,000 cars yearly. This shows they’re serious about expanding in Southeast Asia.
The impact goes beyond just cars. The new factory is part of a bigger change in Indonesia’s automotive industry. When more cars are made locally, it can create opportunities throughout the automotive supply chain.
What makes this different from other car factories? Japanese car brands used to represent over 90% of the market in Thailand. Now, BYD is bringing new electric vehicle options to the region. They’re also planning to bring their luxury brand, Denza, showing they have cars for different markets.
This isn’t just about selling cars – it’s about changing transportation in Southeast Asia. For Indonesia, it means being part of the future of car making, instead of just buying cars from other countries.
The factory will start making cars soon after it’s built. Some of these cars will stay in Indonesia, while others will be sold to nearby countries. This helps Indonesia become an important place for making electric cars in Southeast Asia.
This change in how cars are made and sold shows how the car industry is changing worldwide. Places that used to just buy cars are now making them, especially electric ones. As this factory gets built, it could influence the automotive industry in Southeast Asia.
