Indonesia to Become Xpeng's Global Electric Vehicle Production Base

KatadataOTO – Xpeng X9 and G6 are finally officially on the market. Consumers in Indonesia can now own both electric cars.

In fact, this Chinese manufacturer said that their Electric Vehicles (EV) will be assembled directly in the country.

“Indonesia will be the first assembly facility for Xpeng outside of China,” said James Wu, Vice President of Xpeng in Jakarta a few days ago.

James explained that they will utilize the facilities of PT Handal Indonesia Motor (HIM) in Purwakarta, West Java.

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James further revealed that this decision was made with careful consideration, considering Indonesia has long been on Xpeng's global expansion radar.

“So this will be our first production base (outside of China),” James Wu continued.

The Chinese company believes there are still many opportunities in Indonesia, especially since interest in EVs continues to grow.

So they can attract more consumers and then bring in new electric car models.

“I also know that Indonesia is the fourth most populous country in the world with car sales of one million units or close to it every year,” he said.

This Xpeng executive also revealed that the EV market penetration in the country has reached the 10 percent level.

This figure shows an increasingly open potential, so there are many opportunities for them to market Xpeng electric cars.

“If you look at the EV transition in China, it took quite a long time to reach that level,” he concluded.

On the other hand, a similar sentiment was expressed by Doddy Setiawan, Vice President of Xpeng Indonesia.

According to Doddy, the Xpeng X9 will be the first model to be produced at the Handal Purwakarta factory.

“The plan is that in July 2025 we will start assembling the units ourselves at the Handal factory,” Doddy said on the same occasion.

Ready to Register for Electric Car Incentives

Meanwhile, Xpeng's decision to assemble their products in Indonesia is an effort to increase the domestic component level (TKDN) of the X9.

Photo : KatadataOTO

Because Xpeng intends to register their electric four-wheeled vehicles to be able to get electric car incentives from President Prabowo Subianto.

However, the price of the Xpeng X9 in Indonesia will not change or decrease after being assembled in Purwakarta.

This is done to protect the feelings of the first batch of Xpeng X9 consumers who received CBU units from China.