Xpeng starts EV production in Indonesia by opening its first factory outside China. This is a big step for Indonesia as it becomes more important in the world of electric cars. Xpeng wants to make cars faster and better for people in Indonesia and nearby countries.
Also read: Xpeng Launches Premium G6 and X9 Electric Cars in Indonesia
Why Did Xpeng Choose Indonesia for EV Production?
Xpeng will build its first overseas plant in Indonesia for a few key reasons:
- Market Opportunity: Indonesia is Southeast Asia’s largest automotive market and has potential for EV adoption.
- Government Ontoing: The government provides incentives to EV manufacturers ranging from tax breaks to the development of EV infrastructure and other plans.
- 3esources: Indonesia has a wealth of nickel reserves critical to EV batteries in support of both Xpeng and general supply chain.
By making cars locally, Xpeng wants to lower costs, improve how parts and cars are delivered, and meet the increasing need for eco-friendly vehicles in the area.
Who Is Involved in Xpeng’s Indonesian EV Production?
Xpeng partnered with Handal Indonesia Motor (HIM), a contract manufacturer located in Purwakarta, West Java, for its EV stability operations locally. With HIM, Xpeng can make use of HIS’s manufacturing capabilities, as well as years of Indonesia automobile industry experience.
PT Sinar Eka Selaras Tbk (Erajaya Active Lifestyle) a subsidiary of the Erajaya Group, is the exclusive distributor for Xpeng in Indonesia. This partnership allows for the introduction and distribution of Xpeng vehicles to Indonesian consumers.
Also read: Xpeng X9 Officially Debuts Globally, Priced from IDR 800 Million
How Xpeng Starts EV Production in Indonesia at Handal Plant
Production at Handal Indonesia Motor plant started in July 2025, using Completely Knocked Down (CKD) kits. CKD kits are assembled locally to better ensure quality and to follow local rules and regulations.
The assembly process utilizes high level automation and quality control processes, while adhering to Xpeng global manufacturing standards. This will ensure that the locally assembled vehicles meet the performance and safety performance expectations of Indonesian consumers.
What Xpeng Models Are Produced in Indonesia?
First of all, Xpeng is concentrating on two models for the Indonesian market:
- Xpeng X9: A seven-seat electric MPV designed specifically for the family space. With an electric MPV, this model premium sits at about 701 km of range on a full charge and a powertrain accelerating from 0-100 km/h in 7.7 seconds. The X9 is available in several configurations, with between IDR 990 million and IDR 1.099 billion price range.
- Xpeng G6: A mid-size electric SUV that is equally at home dialing up performance or practical. It has a range of 550 km and accelerates from 0-100 km/h in 6.2 seconds. The G6 has a retail price of IDR 599 million.
They are both intended for the right-hand drive market, consistent with how people drive in Indonesia.
What Means This for the Indonesian Automotive Market?
Xpeng’s entry into the Indonesian market heralds a crucial shift towards sustainable mobility in the region. Local assembly of EVs will make electric vehicles more price competitive and brings local jobs and skills development to the local economy.
Furthermore, this opens the door for other global automotive manufacturers to consider Indonesia as a serious production location – potentially leading to competition and innovation in the EV space.
Also read: Xpeng Electric Cars Now Available for Pre-Order in Indonesia
Conclusion
With the launch of EV production at Handal, Xpeng has officially begun their Indonesia manufacturing journey, a key milestone in Indonesia’s history of automotive development. This is not only a crucial step for Indonesia in the global EV space but will ultimately create space for future innovation mobility and create a better world for all of humanity to live sustainably.
Frequently Asked Questions
Why is Xpeng investing in Indonesia’s EV market?
Xpeng believes Indonesia has the potential to be a strong contributor to the global EV market, which is fueled in part by its large population, government incentives for EVs, and access to core materials for battery manufacturing, such as nickel.
What benefit is local assembly to Indonesian consumers?
Local assembly allows Xpeng to be able to provide better pricing, a better customer experience overall, with faster delivery and better after sales support.
What is the overall presentation of the Xpeng X9 and G6?
The X9 offers a spacious seven-seat configuration and long range, while the G6 balances practicality and performance in a mid-sized SUV format. The models are built with features that embrace advanced technology and safety.
Will Xpeng expand its model pallet in Indonesia?
The focus is currently on the X9 and G6, however, the next step will be to evaluate the market response before deploying additional models that align with Indonesian consumer preferences.
