BYD, the global leader in battery electric vehicles (BEVs), announced on Tuesday its upcoming debut in the Indonesian market next week. This introduction aligns with Indonesia’s ongoing initiatives to expedite the embrace of electric vehicles (EVs) as part of its commitment to emission reduction.
According to analysts, BYD’s expansion into the region is a sign of growing demand for eco-friendly personal transportation solutions. The company is already the largest supplier of EVs in the country, with its passenger EV fleet comprising some 550,000 vehicles. Its latest release into the market is expected to boost its brand visibility and attract more investors interested in its EV business.
Founded in Shenzhen in the 1990s, BYD cut its teeth in supplying batteries to brick-size cellphones and digital cameras, building a resiliency that would serve it well in the transition to renewable energy. In the early 2000s, it started producing EVs, offering orphan models built to meet regulatory mandates in California and elsewhere. Its founder Wang Chuanfu viewed the switch to electric powertrains as a natural extension of its core technology, and he invested in research incentives and state support to speed up the transition.
That helped propel the company to dominance in China, producing about 30,000 pure EVs and plug-in hybrids monthly. Its cheapest model, the e1, sells for 60,000 yuan ($8,950) after subsidies. But it faces rising competition from global automakers rolling out dozens of electric models tailored to local tastes and policy direction. They’re also scaling back purchase subsidies, a move that disproportionately hurts manufacturers like BYD, which sells at the low end of the market.
Aside from the domestic market, China is also becoming a significant exporter of EVs, competing with Japan, Germany, and South Korea. But EVs still account for a small share of overall sales, and many consumers are hesitant to pay more than a few thousand dollars up-front for a vehicle that is yet to be widely available or proven in durability.
The company has expanded into international markets to counter that. It began construction on its first production plant outside of China in Thailand in 2024 to produce cars for the ASEAN market. And it’s working with partners like Blue Bird to promote a shift to greener transportation in the Indonesian market.
The Philippines, Vietnam, and Indonesia are all vying for the right to host a battery-vehicle factory, with each nation offering tax breaks, access to raw materials, and other incentives. BYD executives have scoured the Philippines for potential sites during a visit last year, and the company may decide on a location this quarter, a Philippine trade official says. BYD representatives also visited Indonesia last year, and the country is now a top contender for a new factory.