BYD Reportedly Has Not Yet Involved Local Component Suppliers

KatadataOTO – The Association of Indonesian Automotive Parts and Components Industries (GIAMM) is waiting for automotive manufacturers receiving incentives for imported electric cars or Electric Vehicles (EVs) to start absorbing locally made components.

It should be noted that the provision of incentives for imported electric cars is considered one of the triggers for layoffs (PHK) in the automotive sector.

Although vehicle sales, especially electric cars, have shown positive results, the units do not involve domestically produced components.

Currently, BYD is one of the electric car brands receiving EV import incentives that has recorded positive sales.

Photo : KatadataOTO

The construction of BYD's assembly facility in Subang, targeted for completion next year, is actually a breath of fresh air for the industry as it creates new job opportunities.

However, it is worth noting that to date, BYD is said to have no agreements with domestic component suppliers. Yet, the factory's completion is just months away.

A GIAMM representative mentioned that a year and a half ago, the Ministry of Industry had facilitated a business matching event for BYD with more than 100 supplier companies.

“And it's true that to this day, not a single deal has been made. The obstacles themselves are not yet clear; some member colleagues have indicated it's more about pricing issues,” said Rachmat Basuki, Secretary General of GIAMM, to KatadataOTO some time ago.

They are still waiting for clarity from BYD. Considering that among the many other brands receiving incentives, BYD has recorded the highest sales.

Referring to data from the Association of Indonesia Automotive Industries (Gaikindo), wholesales (distribution from factory to dealer) of BYD electric cars in July 2025 were 2,335 units.

This is still far above other imported electric car incentive recipients like Aion at 421 units and Geely at 249 units.

Meanwhile, cumulatively for the January-July 2025 period, BYD's wholesales reached 16,427 units. This does not include the sub-brand Denza at 6,256 units.

Photo : Courtesy

“For the others (incentive recipients other than BYD), it's usually direct business-to-business (B2B),” said Rachmat.

He hopes that a scenario like a simple Completely Knocked Down (CKD) without local components does not happen.

Without localization, the component industry in the automotive sector, according to Rachmat, will not benefit from BYD's local assembly in Indonesia.