BYD, the world’s largest electric vehicle (EV) maker, is expanding its presence worldwide with a major investment in Indonesia. The company confirmed that its $1 billion EV factory in Subang, West Java, will be completed by the end of 2025. This plant will help BYD strengthen its foothold in Southeast Asia, one of the fastest-growing markets for EVs.
BYD has been growing rapidly in recent years. In 2024, it sold more than 4.27 million new energy vehicles (NEVs), breaking its own sales record. The company now plans to increase its production even more in 2025.
The Subang factory will produce up to 150,000 vehicles every year, just like its first Southeast Asian factory in Thailand. Eagles Zhao, BYD’s president director in Indonesia, said the project is on track.
“We are progressing smoothly and will complete the factory by the end of 2025,” Zhao said during an interview with Reuters and CNBC Indonesia. Once the factory is ready, BYD will use it to produce cars for both the local market and for export to other countries.
Indonesia is a key market for BYD. The country is pushing to make 600,000 EVs domestically every year by 2030. To attract big companies like BYD, the government is offering incentives, including a temporary waiver of import taxes on EVs.
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BYD is already doing well in Indonesia. In 2024, its first full year in the market, BYD sold 15,429 vehicles, making it the country’s leading EV manufacturer with a 36% market share.
BYD offers several models in Indonesia, including the Seal sedan, Atto 3 SUV, Dolphin hatchback, and the M6 multi-purpose vehicle (MPV). The M6 was BYD’s best-selling car in Indonesia last year.
To build on this success, BYD plans to introduce more models in 2025. While details are not yet available, the company is also launching its luxury Denza brand in Indonesia. This move will allow BYD to target premium car buyers.
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Globally, BYD is competing with Tesla for leadership in the EV market. In 2024, Tesla sold slightly more EVs than BYD. However, BYD produced more cars overall, securing its title as the world’s largest EV maker.
BYD is focusing on growing its presence in overseas markets like Southeast Asia. By building factories in Indonesia and Thailand, the company is positioning itself to compete with Japanese and Korean automakers that dominate the region.
Indonesia is becoming an important hub for electric vehicles in Southeast Asia. The government is working hard to attract investments and encourage the shift to EVs. Policies like tax breaks and local manufacturing targets are helping create opportunities for companies like BYD.
The Subang factory is expected to play a major role in Indonesia’s EV plans. Once completed, it will produce 150,000 vehicles a year and create jobs for local workers.
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BYD is investing heavily in technology and infrastructure to stay ahead in the competitive EV market. The company has already proven its ability to grow rapidly, with global sales exceeding 4 million units in 2024.
BYD is also expanding in other parts of Southeast Asia. Its factory in Thailand, built for $490 million, is now producing 150,000 vehicles per year.
The company’s focus on green technology and clean energy makes it a key player in the global transition to electric vehicles.
With the completion of the Subang factory in 2025, BYD is set to boost its production and sales in Indonesia. This will not only help the company grow but also contribute to Indonesia’s goal of becoming a major EV producer.