BYD—China’s top-selling company for new energy vehicles—plans to launch cars in Indonesia soon.
According to Reuters, BYD plans to launch new vehicles in Indonesia next week. No other details were shared by the media outlet. However, the launch hints that BYD might have some EV investment plans lined up in Indonesia.
BYD Indonesia’s launch comes a month after the Indonesian government released a new regulation, providing tax incentives to automakers with electric vehicle (EV) investment plans in the country. The new regulation was signed on December 8, 2023. It grants tax incentives to automakers with plans to build electric vehicle plants and make or increase EV investments in the country.
Under the new regulation, automakers who fit the descriptions above will not have to pay import duties and luxury goods sales taxes on already-built vehicles imported into Indonesia. It also provides tax incentives by provincial governments. Before the new regulation, imported cars had to be delivered in parts and assembled within Indonesia’s borders.
In August 2023, BYD’s main competitor, Tesla, met with Indonesian officials to discuss a potential deal for nickel, an essential material in EV batteries. Later in the year, Tesla visited a nickel plant in Indonesia.