Chery is preparing a strategy to expand its presence in Indonesia, with a focus on increasing local content, enhancing research capabilities, and broadening its product portfolio across multiple segments.

The company is aligning its plans with Indonesia's domestic content requirements (TKDN) for electric vehicles, particularly for its iCar sub-brand, which was introduced earlier this year. The TKDN threshold is scheduled to increase from 40% to 60% next year.

Ecosystem and regulatory alignment

Chery International President Zhang Guibing stated that the company's preparedness is supported by an ecosystem that has already been established in Indonesia.

"iCar is a new brand in Indonesia, but we already have an ecosystem under Chery Group Indonesia, including collaboration with other brands such as Jaecoo, even though the dealer network is different," Zhang said in Wuhu on April 28th.

He noted that this ecosystem includes sales networks and supplier relationships, which are expected to support compliance with regulatory requirements.

"Our suppliers are established and trust us. Overall, we expect to comply with the policies implemented by the Indonesian government," he further added.

Local assembly and TKDN compliance

The company intends to begin local assembly of iCar models in completely knocked down (CKD) form at a partner manufacturing facility, targeting an initial TKDN level of at least 40%. Zhang stated that efforts to increase localisation would commence immediately, without waiting for regulatory deadlines.

"Of course, we have to move quickly. We do not need to wait until next year to achieve the 60% TKDN," he said.

These requirements are outlined in Presidential Regulation Number 79 of 2023, which governs the acceleration of the battery-based electric motor vehicle programme. The regulation mandates a minimum TKDN of 40% for the 2022-2026 period, increasing to 60% between 2027 and 2029, and targeting 80% from 2030 onwards.

R&D investment plans

In parallel, Chery plans to establish a research and development (R&D) centre in Indonesia as part of its long-term strategy. The facility is intended to support the development of products suited to local consumer requirements, while also facilitating technological adaptation and increasing local content.

"I think we will soon establish an independent R&D centre in Indonesia. So we are moving quickly, from R&D to manufacturing to operations," Zhang said in Wuhu on April 28th, 2026.

He further added that strengthening research capabilities is necessary to ensure that products are aligned with domestic market requirements and regulatory provisions.

"I think that in this way, we are generally confident that we can meet all the provisions and policies implemented by the Indonesian government, including the TKDN," he said.

Global strategy context

This initiative forms part of a broader global strategy. Chery has announced plans to establish 26 R&D centres worldwide to enhance competitiveness, ensure regulatory compliance, and develop region-specific products. The company operates in more than 120 countries and regions, supported by 16 KD assembly plants. Its global innovation network includes eight major R&D centres, over 30,000 R&D personnel, and 28 chief scientists.

Product expansion and premium segment plans

Alongside localisation and R&D efforts, Chery Group Indonesia is planning to expand its product line-up in the country, including entry into the premium segment through brands such as Luxeed and Exeed. Chery Group Indonesia President Director Zeng Shuo stated that this move aligns with the company's global strategy of offering a comprehensive product range.

"Globally, we have products from entry-level to premium brands, such as the one mentioned, Luxeed," Zeng said during an interview at the Chery International Business Summit 2026 in Wuhu on April 28th.

He explained that Luxeed will adopt advanced technologies, with a focus on artificial intelligence (AI) and autonomous driving features. The brand carries the slogan "I drive, you enjoy", indicating a technology-focused driving experience.

"'I' can refer to the individual, but it can also represent intelligence. Therefore, Luxeed is focused on enhancing the driving experience through AI and autonomous technology. However, this is expected to materialise in the future," he said.

Operational priorities and market readiness

Zeng stated that the introduction of such technologies in Indonesia would take time. In the near term, the company will prioritise strengthening its operational base, including production stability, quality consistency, and the development of an after-sales network.

"Before proceeding further, the focus is on ensuring that the company remains robust, production is stable, quality is maintained, and the after-sales foundation is well established," he said.

Once these elements are in place, Chery plans to introduce premium brands such as Luxeed and Exeed to the Indonesian market.

"Once a solid foundation has been established, the plan is to introduce premium brands to the market, including those mentioned earlier," he further added.