Factors Behind the Popularity of Chinese Electric Cars in Indonesia

KatadataOTO – Chinese cars in Indonesia were once not as popular compared to Japanese brands. However, entering 2020, the presence of Chinese brands slowly began to be seen.

It started with the arrival of the small electric car from Wuling to the entry of the Chinese automotive giant, BYD, in early 2024.

This was further supported by the government's commitment to increasingly promote the use of environmentally friendly battery-based vehicles, also known as electric cars.

Analysts believe that China's manufacturing competence in environmentally friendly vehicle technology is one of the key factors that has made Chinese electric cars well-received in both Indonesia and the world.

Photo : Chery International

The shift in supporting policies from conventional engine cars towards electrification or Battery Electric Vehicles (BEV) is an innovation that many Chinese brands have focused on.

“We can see that they (Chinese car brands) entered at the perfect time,” said Yannes Martinus Pasaribu, an academic from the Bandung Institute of Technology (ITB) and an automotive analyst, when met in Tangerang some time ago.

Among the many brands, Yannes highlighted the electric cars from BYD which are highly dominant because they control various segments.

From car components and batteries to large vehicles. Indeed, BYD itself started as a technology company, so it has capabilities, especially in the BEV segment.

This has led BYD to finally record positive retail sales results in Indonesia. As of July 2025, the brand holds the top position as the best-selling Chinese car brand in Indonesia.

Entering the Market with Low Prices

Besides capable technology and support from government policies, Yannes revealed that Chinese car brands enter by offering low prices.