BYD signs agreement to explore EV opportunities, build plant in Indonesia
- Southeast Asia will become a key growth market for Chinese EV companies, Shanghai analyst says
- Chinese EV maker started construction of its first plant in the region, in Thailand, in March
The Shenzhen-based carmaker plans to build an ecosystem to explore development opportunities in Indonesia, its government said in a statement last week. The Indonesian government did not provide further details, and BYD said it would not comment any further on the agreement.
“Southeast Asia will become a key growth market for Chinese EV companies because of its dense population and the rising demand for green vehicles,” said Gao Shen, an independent analyst in Shanghai. “Chinese-made EVs have been well received in these countries and companies like BYD are welcome to set up production lines there.”
“We appreciate BYD’s initiative to further explore these opportunities,” Luhut B. Pandjaitan, Indonesia’s coordinating minister for maritime affairs and investment, said in the statement. “With abundant natural resources, a strategic geographic location and government support, I believe Indonesia has the key ingredients to develop a domestic EV industry.”
The EV maker started construction of its first plant in the region, in Thailand, in March. Four million cars are sold in Southeast Asia on average each year, and BYD’s factory will have an annual capacity of 150,000 EVs when it is completed next year.