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View all search resultsBYD, VinFast to start local EV production in March, govt says
Failure to meet those commitments allows the government to draw down bank guarantees posted by the companies as penalties.
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The BYD Dolphin is displayed on Jan. 18, 2024, in Jakarta at an event marking the Chinese electric car brand’s entrance into the Indonesian market. (AFP/Bay Ismoyo)
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hina’s BYD and Vietnam’s VinFast are expected to begin local electric vehicle production in March, the government has said, as the clock starts ticking on localization deadlines.
The move comes as Indonesia ended tax breaks for EVs imported in both completely built up (CBU) and completely knocked down (CKD) form at the end of 2025, shifting pressure onto global automakers to deliver on long-promised factory investments.
“Companies that import CKD units have already started assembling vehicles, while companies that import CBUs, such as BYD, are still carrying out construction,” Nurul Ichwan, undersecretary for investment promotion at the Investment and Downstream Ministry, said on Jan. 9.
“Based on our latest communication, they see no reason not to realize their investment commitments, given that construction is already underway.”
Read also: Indonesia car sales slide 7.2% in 2025 as weak demand persists
Both BYD and VinFast had secured commercial production permits from the Industry Ministry in late Dec. 2025, including verified industrial certificates for four-wheel vehicle assembly and company registration codes required to operate, said Setia Diarta, director general for metal, machinery, transportation equipment and electronics at the Industry Ministry.
“BYD and VinFast are expected to start mass production within the next two months,” Setia told The Jakarta Post on Thursday. “They are still in the trial production phase and undergoing vehicle type approval tests at the Transportation Ministry.”
