Chinese automotive company Guangzhou Automobile Group (GAC) International has officially announced a strategic step to strengthen its investment in Indonesia. This was revealed by the board of directors led by GAC Aion International President Director Wei Haigang after meeting with the Deputy Minister of Investment and Downstream of the Republic of Indonesia Todotua Pasaribu in Jakarta on February 26th.

"Indonesia has great potential as the centre of the automotive industry in Southeast Asia (ASEAN). Therefore, with the full support of our strategic partner, Indomobil, we strongly believe in the strength of the automotive market in Indonesia," Wei said in his written statement.

On that occasion, it was revealed that GAC International would implement a phased approach in Indonesia, starting from making it the main base for manufacturing and exports in ASEAN.

Indonesia will also become a production hub for electric cars in the region, and the third phase will include a global expansion plan. At the same time, research and development (R&D) facilities will be built in the country to strengthen the position.

Meanwhile, this year, GAC International and Indomobil Group will operate their factory in Cikarang, West Java with a production capacity of up to 50,000 units per year. The first model to enter the assembly line is the Aion V in April 2025. With this facility, GAC hopes to accelerate local production of electric vehicles to meet growing market demand.

For this step, Indonesia Investment Coordinating Board (BKPM) appreciates the strategic collaboration between GAC Aion and Indomobil as a concrete step in supporting the acceleration of the transition towards sustainable mobility.

"This synergy is expected to contribute to the development of the electric vehicle industry in Indonesia, in line with the government's agenda in encouraging innovation and investment in the sector," Todotua said in a separate statement.