China's leading electric vehicle manufacturer, BYD, aims to complete its US$ 1 billion plant in Indonesia by the end of 2025, according to the head of its local unit.

This highlights the company's ambition to establish a strong presence in a market traditionally dominated by Japanese automakers.

Eagle Zhao, BYD's President Director in Indonesia, stated that the long-term objective for the facility is to cater to the export market. "The progress of our local manufacturing operations is proceeding smoothly and remains on track. We are committed to completing the construction by the end of 2025," Zhao remarked during a joint interview with two major international media outlets.

The plant, located in an industrial complex in Subang, West Java, is set to have an annual production capacity of 150,000 EV units.

As part of its investment, BYD has received permission to temporarily import vehicles into Indonesia without incurring import duties, a government policy designed to boost EV demand while attracting automotive industry investments.

The government has set a target of producing 600,000 EVs domestically by 2030.

Between January and November, BYD led the battery-based EV market with approximately 36% market share. Zhao expressed confidence that the new plant would begin producing vehicles shortly after the completion of construction.

BYD has so far introduced four models in Indonesia: the Seal sedan, the Atto 3 SUV, the Dolphin hatchback, and the M6 seven-seater MPV, which was the best-selling model among these in 2024.

Zhao also announced plans to launch additional models in 2025, though the number of new releases was not disclosed. The company is targeting significant growth in sales and is set to introduce its premium Denza brand in Indonesia this week.

Globally, BYD surpassed its sales target in 2024. The company has been intensifying its presence in Southeast Asia, challenging a market traditionally dominated by Japanese and Korean automakers.

In 2024, BYD inaugurated its first EV plant in Southeast Asia, located in Thailand, with an investment of US$ 490 million. This facility has an annual production capacity of 150,000 units, including plug-in hybrid vehicles.

In Singapore, BYD widened its sales lead over Tesla in the first half of 2024, further solidifying its position in the region.