AION Prepares For Local EV Battery Assembly and Production in Indonesia

The electric vehicle market in Indonesia is transforming at rapid speed as several new brands have emerged. Among them, Aion-a Chinese automotive brand emerged with a great stand, putting itself as a looming market giant in the up-and-coming industry. Plans are in place to do local assembly and battery production for Aions, which will contribute to growing electric vehicle ecosystems in the country.

Commitment to Local Assembly

Aion is soon going to take a historic step into the Indonesian auto sector. The company is planning to begin the local assembly of its electric automobiles at Cikampek, West Java by 2025. Aion CEO, Andry Ciu confirmed this ambitious plan during a recent meeting in Bandung. He appeared optimistic about the local assembly process. “The career will start early next year. Hopefully, this local assembly process can be accelerated,” he added.

The establishment of a local assembly is not only a business strategy but also a declaration of Aion’s commitment to the Indonesian market. As such, assemblage centres within the country minimize costs and will make it more accessible to consumers in Indonesia.

Also Read: MG Motors Launches EV Battery Factory in Indonesia

Initial Capacity and Future Expansion

Aion’s assembly plant has an initial capacity to assemble 30,000 units per year. This capacity is not cast in stone; it is adjustable according to market demand. According to Andry Ciu, “With the current capacity, it is more than enough to meet Indonesian market demand, and there is a possibility for export as well.” This shows that Aion is not only after domestic sales but is reaching export opportunities as well, which further establishes it in the region.

Plans for the Production of EV Batteries

In addition to local assembly, Aion is also targeting electric vehicle battery production in Indonesia. As central to the overall supply chain for EVs, battery production is and has been significant enough for several manufacturers, Wuling among them, to already start their foray into producing EV batteries, with launches by the end of next year.

Andry Ciu told reporters that Aion is committed to fully developing its battery factory, further emphasizing that “We have our battery factory with technology that is different from other brands.” This statement underlines the aim of Aion in leveraging innovative technology in battery production toward maintaining competitiveness for electric vehicles in the market.

Challenges Ahead

Though the company plans sound promising, Aion does know that introducing battery production in Indonesia is not something that can happen overnight. The intricacies of developing a manufacturing facility, attaining the required permits, and developing an efficient supply chain are just some of the problems Aion has to face on its journey. However, the company never loses track of its promises and considers those hurdles as learning steps to reach success.

Aion Electric Vehicle Lineup

Up to date, Aion has introduced three models to Indonesia: Aion Y Plus, ES, and Hypetech HT. Its Aion Y Plus model has been put to the test on the Jakarta-Bandung route. With this, Aion exhibits serious intent regarding the electrification expansion of its Aion brand in Indonesia, complemented by excellent attributes to meet the varied types of needs of consumers.

Market Trends and Potential

The market for electric vehicles in the country is rapidly gaining momentum with the high support from the government and growing interest from consumers. More players in the market lead to increased competition. With local assembly and battery production, Aion has the perfect setup to capitalize on these trends. The significant demand for electric vehicles could lead Aion to hold a substantial market share in the future.

Also Read: GAC Aion and PLN Partner to Build Public EV Charging Stations in Indonesia