BYD to establish a plant in Indonesia, aiming for operation by year-end 2025, marking the brand's ongoing global growth.

In a series of strategic moves, BYD, the leading electric vehicle (EV) maker in Indonesia, is expanding its global footprint.

BYD's latest venture sees the company cutting ties with Jinjiang Construction Brazil, as work on the plant in Brazil was suspended in December due to degrading construction conditions. However, this setback has not deterred BYD, as they are already making strides elsewhere.

Last year, the company started production at a plant in Uzbekistan. This year, BYD is on track to complete a $1 billion plant in Surabaya, Indonesia, by the end of 2023. The city in Indonesia where BYD plans to build the announced plant is Surabaya.

The plant in Surabaya, West Java, is expected to begin supplying the domestic market first. Currently, BYD exports the Seal, Atto, Dolphin, and M6 models to Indonesia from China. With the new plant, there is potential for future production for export markets.

BYD's president in Indonesia, Eagles Zhao, stated that the company will initially supply the domestic market, but the long-term plan includes production for export markets. This is a significant step for BYD, as they aim to become a major player in the global EV market.

One of the key components of BYD's expansion strategy is the temporary export of vehicles to Indonesia. Due to its commitment to the project, BYD is not paying duties for this service. The Hefei, BYD's third ro-ro vessel, launched in January, has a capacity for 5,000 vehicles and will be used to export BYD's new energy vehicles to Europe.

In addition to the Hefei, BYD has signed an MoU with Hyundai Glovis in October to share vessel capacity for deep-sea finished vehicle shipments between China and BYD's export markets. This collaboration is expected to boost BYD's export capabilities.

BYD's commitment to the Indonesian market is evident, as they sold 15,400 electric vehicles in Indonesia last year. The company's production plant in Subang, West Java, has an installed annual capacity for 150,000 electric vehicles, further demonstrating their dedication to the market.

With these strategic moves, BYD is positioning itself as a major player in the global EV market, both in terms of production capacity and export capabilities. The company's expansion plans include a factory in Hungary, due for completion in 2025, further solidifying BYD's global presence.