Electric Vehicle Import Incentives End in 2026, BYD Comments

KatadataOTO – The government is providing import incentives for electric cars for several brands that meet the requirements in Indonesia. However, this policy is only valid until the end of 2025.

Starting in 2026, the brands involved in the program must begin local assembly according to the number of vehicles imported.

Currently, BYD is actively introducing new models, all of which are imported as Completely Built Up (CBU) units from Japan.

All of these models will only be assembled at BYD's factory facility located in Subang starting in 2026.

Photo : KatadataOTO

Responding to the electric car import incentives that will soon end with no sign of an extension, BYD has responded positively.

“This encourages us to have production facilities as soon as possible,” said Luther T. Panjaitan, Head of PR & Government Relations at PT BYD Motor Indonesia in Tangerang, on Monday (28/07).

He emphasized that BYD will locally assemble its vehicle lineup next year according to the initial plan. Although he was reluctant to disclose more details regarding the timeline.

“Once we have the production facility, we must immediately start production there,” Luther affirmed.

For your information, the BYD factory has a production capacity of up to 150,000 units per year. The facility also required an investment of around 1 billion USD (approximately Rp 16.2 trillion).

The BYD Atto 1 is one of the candidates for their electric cars to be locally assembled. Since its launch, the car is claimed to have received a good response from the Indonesian public.

“We are quite proud of the reception for one of our products and the trust of consumers; that is important to us. As for the numbers (orders), we will find a time to announce them,” Luther affirmed.

Photo : KatadataOTO

For your information, the BYD factory is planned to produce units not only for domestic needs but also for export.

The BYD assembly facility will accommodate the Completely Knocked Down (CKD) process for various models, one of which is believed to be the Denza D9, a car from BYD's premium sub-brand.

Currently, BYD sells five models: the Dolphin, Atto 2, Seal, M6, and Atto 1. Meanwhile, Denza has only one product, the D9.