BYD and Chery Face Fines Over Electric Vehicle Subsidies

Especially after the massive price war. Many manufacturers are competing to lower the prices of electric cars or other environmentally friendly vehicles to attract consumers.

Although it succeeded in boosting sales, on the other hand, some brands have difficulty surviving because they cannot drastically lower car prices.

The price reduction is considered to have its own risks. For example, a decrease in the quality of cars sold to consumers, and then damage to the reputation of Chinese cars.

With the tight competition in China's automotive industry, the government has finally begun to investigate several related incidents so that neither manufacturers nor consumers are harmed.

Photo : KatadataOTO

BYD and Chery, Subsidy Recipients in Indonesia

In Indonesia, BYD and Chery have also registered their environmentally friendly vehicle lines in the government subsidy program.

Chery has assembled the E5 and J6 electric cars as well as the PHEV (Plug-in Hybrid Electric Vehicle) Tiggo 8 CSH.

Meanwhile, BYD uses the government's imported electric car subsidy to make it easier for investors to sell domestically.

Photo : KatadataOTO

However, the Chinese automotive giant is required to conduct local assembly at their facilities by 2026, in accordance with the number of units sold in Indonesia.

BYD's factory is still under construction. Its facility is said to begin normal operations early next year.

Meanwhile, Chery does not yet have its own factory. They use the facilities of PT HIM (Handal Indonesia Motor) in Purwakarta and Bekasi.