SUBANG – Vietnamese electric car manufacturer VinFast has successfully secured commitments from over 20 partners to develop a robust sales and after-sales network in Indonesia. The announcement comes following their debut at the Indonesia International Motor Show (IIMS) in February 2024, where they showcased their electric car models, the VinFast e34 and VinFast VF5.
On Monday, July 15, 2024, VinFast held a groundbreaking ceremony for their new electric car assembly plant in Subang, West Java. This marks a significant step in VinFast’s ambitious plans to establish a strong presence in the Indonesian market.
Temmy Wiradjaja, CEO of VinFast Indonesia and Malaysia, highlighted the company’s progress in building a dealer network during the groundbreaking ceremony. “Currently, we have signed memorandums of understanding (MoU) with 21 dealer groups,” he announced.
Expanding Dealer Network
As of mid-July 2024, VinFast has two official dealers operating in Indonesia. By the end of July, the company plans to open ten more dealerships across the country, not just in Jakarta, but also in regions like Bali and Central Java. “At the end of this month, there will be ten dealers opened simultaneously, possibly around July 29, 30, or 31,” Temmy stated.
VinFast’s goal is to establish a widespread network of dealers and authorized workshops from Aceh to Papua. This ambitious expansion aims to ensure that customers throughout Indonesia have access to VinFast’s products and services.
Affordable Electric Cars
One of VinFast’s key strategies in making electric vehicles more accessible is their innovative battery rental scheme. This approach significantly reduces the upfront cost of their electric cars. For instance, the VinFast e34, which normally retails at Rp315 million on the road (OTR) in Jakarta, can be purchased at a lower price with the battery rental scheme. Similarly, the VF5’s price drops from Rp310 million OTR Jakarta to Rp242 million OTR Jakarta with the same scheme.
This pricing strategy is designed to make electric cars more affordable for Indonesian consumers, thereby encouraging the adoption of environmentally friendly vehicles.
Future Ambitions
Although Temmy did not disclose the exact number of dealerships VinFast aims to establish by the end of 2024, he emphasized the company’s commitment to expanding its network. “I do have a personal target, but I can’t tell you yet,” he said, keeping future plans close to the chest.
VinFast’s entry into the Indonesian market represents a significant milestone for the company, which is part of the larger VinGroup conglomerate. With the development of a local assembly plant and a growing network of dealers, VinFast is poised to become a major player in Indonesia’s electric vehicle market.
VinFast’s Vision for Indonesia
VinFast’s focus on developing a comprehensive sales and after-sales network demonstrates their long-term commitment to the Indonesian market. The company is not just looking to sell cars but to provide a full spectrum of services that include maintenance, repairs, and customer support.
The establishment of the assembly plant in Subang is a clear indication of VinFast’s intention to localize production and create jobs, contributing to the local economy. This move aligns with Indonesia‘s goals of becoming a hub for electric vehicle manufacturing in Southeast Asia.
VinFast’s battery rental scheme is a groundbreaking initiative that addresses one of the biggest barriers to electric vehicle adoption – the high cost of batteries. By separating the cost of the battery from the cost of the car, VinFast makes it easier for consumers to transition to electric vehicles.