Chery’s Journey in Indonesia: Current Operations and Achievements
Assembly Partnership with Handal Indonesia Motor
Chery is the Chinese leader in carmaker operations that has managed to be in Indonesia since 2022, by assembling automobiles together with Handal Indonesia Motor in Bekasi, West Java. With a production capacity of 10,000 units annually, this plant plays a significant role in furthering Chery’s share in the Indonesian automotive industry.
Also read: Chery Plans to Launch Special Car for Indonesian Market
Success of Omoda E5: Best-Selling EV in Indonesia
One of Chery’s standout achievements in Indonesia is the success of its Omoda E5, an electric vehicle (EV) model. The Omoda E5 emerged as the best-selling EV in Indonesia during the first half of 2024, meeting the Government’s 40% local content requirement and qualifying for substantial EV subsidies.
Government’s Vision: Strengthening Local Production
Call for a Dedicated Manufacturing Facility
Vice Industry Minister Faisol Riza has urged Chery to establish its own manufacturing plant in Indonesia. “By building a dedicated assembly facility, Chery can boost its production capacity, penetrate export markets beyond ASEAN, create new jobs, and contribute significantly to national economic growth,” Faisol said during his visit to the Handal Indonesia Motor plant.
Increasing Local Component Usage from 40% to 60%
While Chery currently uses 40% locally-produced components in its vehicles, the Government has encouraged the company to raise this figure to 60%. This move aims to strengthen domestic industries and further stimulate the local economy.
Role of Incentives in Supporting EV Growth
Faisol reiterated the Government’s commitment to fostering the automotive sector through favorable regulations and incentives. Tax benefits for electric vehicles, including subsidies for models that meet local content requirements, underline Indonesia’s push towards sustainable and self-reliant automotive growth.
Chery’s Investment and Future Projects in EV Production
Chery responded to growing demand for EVs in Indonesia by announcing the investment of around Rp 250 billion ($16 million) back in 2023 to reinforce its production for electric vehicles. This investment also supports the strategic direction of making Indonesia a stronghold market and also a manufacturing site for electric cars in Southeast Asia.
Also read: Future of Electric Bikes in Indonesia
Impact on Economic Growth and Job Creation
With a specific production plant and more components sourced locally, Chery will play a crucial role in Indonesia’s economic development. Increased local manufacturing will lead to the creation of jobs, support domestic suppliers, and enhance Indonesia’s global competitiveness in the automotive sector.
Chery’s expansion plans in Indonesia are very promising to the nation’s automotive sector as the investment plans reach through continued government support in using more local components and other investments in EV production. Chery is well-placed to dig deeper roots in the country by focusing on local manufacturing and aligning with national priorities to become one of the significant contributors toward economic growth and automotive innovation in Indonesia.