What’s new: Indonesia has sealed deals with four Chinese electric vehicle (EV) makers, which may inject new impetus into its efforts to become a major exporter of right-hand-drive EVs.
The deals were signed during a two-day visit to Beijing last week by Indonesian Industry Minister Agus Gumiwang Kartasasmita, who on Friday hailed the partnerships as an integral part of reaching the Southeast Asian country’s goal to produce 600,000 EVs by 2030.
Agus said Indonesia plans to export right-hand-drive EVs, which are mostly used in places where drivers use the left side of the road, to 54 countries.
The four Chinese EV-makers — Neta Auto, SAIC-GM-Wuling Automobile Co. Ltd., Chery Automobile Co. Ltd. and Dongfeng Sokon Motor Co. Ltd. — each have their own distinct cooperation plans with the Indonesian government, according to Agus.
For example, Neta Auto aims to increase the proportion of domestically produced car parts used in its locally manufactured vehicles to 60% by 2025 under a scheme called Neta Auto Manufacturing Indonesia. Chery is studying the possibility of producing plug-in hybrid vehicles in the country.
The background: As competition heats up at home, Chinese EV-manufacturers are stepping up their expansion into Indonesia, where the penetration rate of battery-powered cars remains relatively low.
In April, Guangzhou Automobile Group Co. Ltd.’s EV marque Aion announced plans to build its second Southeast Asian factory in Indonesia, which will have an initial production capacity of 100,000 cars a year.
In January, BYD Co. Ltd., the world’s largest EV-maker, said that it would invest $1.3 billion to build a plant in Indonesia with an annual production capacity of 150,000 vehicles.
Chinese brands topped the EV sales rankings in Indonesia in April, with Baojun Cloud manufactured by SAIC-GM-Wuling being the best-selling model that month, the China Daily reported, citing data from the Association of Indonesian Automotive Industries.
Indonesia is striving to be a major EV player in the supply chain given its massive reserves of nickel, a vital raw material for batteries. According to the U.S. Geological Survey, the country holds the world’s largest nickel reserves, with an estimated 21 million tons, accounting for around 22% of the global total.
Contact reporter Ding Yi (yiding@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)
