APSN Banner

Neta, Wuling, Chery, and Sokon to make Indonesia an EV export hub

Jakarta Globe - June 14, 2024

Antara, Jakarta – The Industry Ministry has reached an agreement with four Chinese electric vehicle (EV) manufacturers – Neta, Wuling, Chery, and Sokon – to establish Indonesia as a hub for producing electric vehicles for export.

"The Indonesian government has set a target of producing 600,000 electric vehicles by 2030. The companies have also agreed to make Indonesia a base for manufacturing right-hand drive EVs for export to 54 countries," said Industry Minister Agus Gumiwang Kartasasmita on Friday.

This agreement was made during Minister Agus's visit to Beijing, China, from June 12-13.

Minister Agus detailed that Neta, through Neta Auto Manufacturing Indonesia, aims to increase its Domestic Component Level (TKDN) to 60 percent by 2025, with an annual sales target of 10,000 units.

SAIC GM Wuling Automobile Company is expected to boost the export of Indonesian-made electric cars, enhancing Indonesia's position as an EV production hub for ASEAN and global markets.

"The Indonesian government encourages Wuling to explore expanding its export market for EV products, which will help solidify Indonesia's status as an EV production base in ASEAN and globally," he said.

Chery Automobile plans to research producing plug-in hybrid electric vehicles (PHEVs) in Indonesia. The company noted that PHEVs are more popular in China due to their more economical fuel consumption compared to hybrid electric vehicles (HEVs). Chery also committed to producing 100,000 EV units by 2030.

Minister Agus further noted that Sokon, through Sokonindo, is expected to develop electrified vehicles and support the EV ecosystem by introducing new electric vehicle models to Indonesia, leveraging its production capacity of up to 50,000 units.

He also pointed out that these Chinese manufacturers could utilize the incentives provided by the Indonesian government to encourage investment.

Additionally, two other Chinese EV giants have committed to establishing factories in Indonesia. GAC Aion is set to build a factory with an initial capacity of 100,000 units per year, while BYD plans to invest $1.3 billion in a manufacturing plant, aiming for an annual production capacity of 150,000 units.

Source: https://jakartaglobe.id/business/neta-wuling-chery-and-sokon-to-make-indonesia-an-ev-export-hu