How Chinese Auto Industry Is Putting Down "Full-Chain Roots" in Indonesia

Core Data/Events

Company Event Key Data

BYD Subang factory in West Java enters trial production in Q1 2026 Investment IDR 11 trillion (~USD 560 million); Annual capacity 150,000 units; Battery plant capacity 6GWh; Localization target 40% by 2026 → 70% by 2028; 30+ service centers by 2026

EVE Energy + Huayou Cobalt Framework agreement signed with ANTAM & IBC JV company HYD to build full-chain battery project: Pyrometallurgy 100,000 tons Ni/year, Hydrometallurgy 50,000 tons Ni/year, Precursor 105,000 tons/year, Cathode 30,000 tons/year, 20GWh Ni-based batteries (Phase I 7GWh)

CATL First cell production line equipment arrives at Indonesia project Initial capacity 6.9GWh, to be operational by end-2026; Future expansion to 15GWh

Times Intelligent Strategic MOU signed with IBC et al. Exploring local EV development based on integrated intelligent chassis; “1+1+1” global localization strategy

Sailun Group Demak plant in Central Java officially operational Investment IDR 4 trillion; Passenger tire 3.6M units/year, Truck tire 600,000 units/year, OTR tire 37,000 tons/year

Chinese Brand Performance 2025 Indonesia EV market BYD + Denza combined sales 54,248 units, 51% of pure EV market; Wuling 16,122 units; Chery Group 9,170 units

Indonesia Market Overview 2025 pure EV sales 106,644 units, more than doubled YoY; December alone 23,242 units, up 134% YoY

In-Depth Analysis 1. OEMs First: Chinese Brands’ “Market Positioning” In 2025, Chinese brands delivered solid results in Indonesia’s EV market: BYD and its sub-brand Denza combined sold 54,248 units, capturing 51% of the local pure EV market; SAIC-GM-Wuling sold 16,122 units; Chery and its Omoda & Jaecoo brands sold 9,170 units combined. More notably, Wuling’s Darong, since its November 2025 launch in Indonesia, has accumulated 1,938 orders, becoming the first MPV in Indonesia offering both pure electric and plug-in hybrid powertrains. Changan announced in January its micro EV Lumin priced at IDR 183 million (∼RMB 79,000), while GAC Aion launched multiple EV models priced below IDR 500 million (∼RMB 207,000). Geely has also confirmed that its sub-brands Zeekr and Lynk & Co will formally enter the Indonesian market in 2026.

2. The Supply Chain Legion: From “Single Points” to “Full Chain” If OEMs are “conquering territory,” supply chain companies are “building fortifications.” Full-Chain Batteries: EVE Energy’s investee company HYD signed a framework agreement with ANTAM and IBC, planning to build an integrated full industrial chain covering mining, pyrometallurgy, hydrometallurgy, refining, precursor and cathode material production, batteries, and recycling. According to the agreement, provisional capacities include pyrometallurgy 100,000 tons Ni/year, hydrometallurgy 50,000 tons Ni/year, precursor 105,000 tons/year, cathode material 30,000 tons/year, and 20GWh nickel-based batteries (Phase I 7GWh). This marks the first time Chinese companies have achieved full-chain layout from “nickel mine to battery” in Indonesia. CATL’s Indonesia power battery project is also advancing simultaneously, with first cell production line equipment already on-site. Initial capacity is 6.9GWh, expected to be operational by end-2026, with subsequent expansion to 15GWh. Intelligent Chassis: Times Intelligent signed a strategic MOU with IBC and others to jointly explore Indonesian local EV development based on integrated intelligent chassis and cooperation models. This marks the first time Chinese intelligent chassis technology has entered Indonesia in “technology export” form. Tire Manufacturing: Sailun Group’s Demak plant in Central Java has officially commenced operations, with investment reaching IDR 4 trillion. Annual capacities include 3.6 million passenger tires, 600,000 truck tires, and 37,000 tons of OTR tires. The plant divides Indonesia into 8 sales regions, comprehensively covering core cities including Aceh, Medan, Jakarta, Surabaya, and Makassar.

Industry Insights BYD’s Indonesia plant launch, coupled with the collective landing of the supply chain “legion,” offers three lessons for Chinese automakers going global:

“OEMs First, Supply Chain Roots” Is the Only Path: With Indonesia’s CBU import incentives terminated in 2026, the window for pure trade participation has closed. The reason Chinese brands can rapidly respond to policy shifts is fundamentally because supply chain players like EVE Energy, CATL, and Sailun are “building fortifications” behind them.

“Resources + Market” Dual Engine Creates an Irreplaceable Anchor: Indonesia’s unique value lies in both having the world’s largest nickel reserves and ASEAN’s largest and fastest-growing EV market. Whoever achieves full-chain layout—“mining-smelting-battery-vehicle”—will control the “pricing power” of Southeast Asia’s EV industry.

“Technology Export” Has Greater Strategic Depth Than “Capacity Transfer”: Times Intelligent’s integrated chassis cooperation and EVE Energy’s 20GWh battery project are not simple capacity transfers—they are overseas exports of Chinese technology standards. When Indonesian plants begin producing “Chinese-defined” products, Chinese autos will have truly completed the leap from “manufacturing export” to “standard export.”

BYD Indonesia BatterySupplyChain EVEEnergy CATL SailunTyre OEMsFirstSupplyChainRoots