China's BYD opens $700 million Indonesia EV assembly plant

SUBANG, Indonesia, Sept 3 (TokoKata) — Chinese electric vehicle maker BYD opened its first vehicle assembly plant in Indonesia on Thursday, part of the company's investment commitment under incentives offered by the government as it seeks to expand production in Southeast Asia's largest economy.

The facility, operated by PT BYD Auto Indonesia at the Subang Smartpolitan Industrial Park in West Java, was built on 126 hectares with an investment of 11.6 trillion rupiah ($700 million).

The plant currently employs around 5,000 local workers and could employ more than 20,000 when operating at full capacity, the company said. It has an annual production capacity of up to 150,000 vehicles.

The factory is equipped to carry out stamping, welding, painting and vehicle assembly, said Liu Xueliang, vice president of BYD Co Ltd.

BYD stopped producing conventional gasoline- and diesel-powered vehicles in 2022 and has since focused on new energy vehicles, Liu said.

The company sold 4.6 million new energy vehicles globally in 2025 and had sold 17.8 million vehicles in total by August 2026, he said.

The company has been operating for 35 years, Liu added.

Expanding Indonesia's EV ecosystem

Indonesian Industry Minister Agus Gumiwang Kartasasmita said BYD's decision to build the plant in West Java was appropriate, citing the province's economic growth of 5.73% year-on-year.

The inauguration comes as electric vehicle sales in Indonesia have been rising sharply, providing an opportunity for BYD to deepen its manufacturing presence in the country.

Agus said the plant should mark a shift from BYD's position as a market leader toward greater development of local components and a broader electric vehicle ecosystem.

"We hope BYD's investment will not stop at the factory but will also expand into the electric vehicle ecosystem," Agus said, according to CNN Indonesia.

The first model scheduled for production at the facility is the BYD M6 DM, with an Indonesian domestic component level, or TKDN, of more than 40%.

The plant forms part of Indonesia's efforts to attract electric vehicle manufacturers and develop domestic production and supply chains as the government seeks to accelerate the country's transition toward electric mobility.