The exceeded Chinese automakers by consolidating their control over Indonesia’s growing Ves (electric vehicles), accumulating more than 90% of sales in the first half of 2025.
Wholesale sales of pure veses in the largest economy in Southeast Asia fired to 35,749 vehicles in the first 6 months of the year, an increase of 267% over the same period last year, according to data released by the Indonesian automotive industry association.
Chinese brands led the ranking, with BYD selling 13,995 Ves in the semester, ensuring about 40% of the battery electric vehicle market. , and completed the first 4 positions.
BYD’s rise to the top was quick. The automaker announced its foray into the Indonesian market only in January 2024. By the end of the year, it had sold 15,429 pure electric vehicles, according to the sector association.
BYD was classified as the 6th best selling car brand in wholesale vehicles, which were 374,740 in the 1st semester. The Japanese and South Korean automakers, Daihatsu and Honda got the first 3 positions.
The rapid acquisition by Chinese brands of the important emerging market of electric vehicles highlights the success of China’s industrial strategy abroad and represents a significant challenge for established global automotive giants, especially Japanese, which have been slower in the transition to electrification.
The Japanese and Korean automakers could hardly stand out in the Indonesian electric vehicle segment. Hyundai was the only non -Chinese brand with remarkable sales of electric vehicles, although the number was less than 1,000.
“Foreign automakers had difficulty surviving in Indonesia before Jakarta started their campaign for electric vehicles, but now Chinese companies probably have a pioneering advantage.”said the deputy general of Weling in Indonesia, Han Dehong, in 2022, when the company launched its 1st electric vehicle produced locally.
The boom of electric vehicles in Indonesia occurs at a time when the country seeks to leverage its vast nickel reserves, a critical component in electric vehicle batteries, to build a local ecosystem of manufacturing electric vehicles.
The Indonesian government has set ambitious goals, with the objective of producing 600,000 electric vehicles per year by 2030 and positioning the country as a right -handed production base for exports to more than 50 countries.
Seeking to attract foreign investment and reduce its dependence on imports, the Indonesian government has also implemented a series of tax incentives and political measures to support the manufacture of electric vehicles, a strategy that found enthusiastic partners in China.
Weling, the 1st to enter the Chinese market, built its first factory in 2017. BYD continued with a more aggressive boost, announcing a $ 1.2 billion investment in early 2024 for a manufacturing complex, including a research and development center, which is expected to go into operation in January 2026.
Other Chinese companies followed the example. Guangzhou Automobile Group, a company behind the Aion brand, opened a jakart factory in June, and Xpeng started local production in July, making Indonesia its 1st manufacturing base abroad.
Investment extends deeply to the supply chain. The Chinese Giant Batteries Contemporary Amperex officially inaugurated in July its nickel industrial park and batteries. The nearly US $ 6 billion project aims to create a closed circuit system, from mining and casting to battery manufacturing and recycling.
Despite the rapid growth, electric vehicles remain a small slice of the Indonesian market. The penetration rate of pure electrical vehicles reached 9.1% in the 1st semester of 2025, above just over 2% of the previous year. This number is still behind neighboring Thailand, another important regional market, where the penetration of electric vehicles exceeded 13% in 2024.
This report was originally in English by the global cash on 29.Jul.2025. Was translated and republished by Poder360 under mutual content sharing agreement.
