BYD Motor Indonesia is moving closer to full-scale local vehicle production, with the Association of Indonesian Automotive Industries (Gaikindo) stating that the company's assembly plant in Indonesia has already begun operations.

Speaking on the sidelines of the Gaikindo Indonesia International Auto Show (GIIAS) 2026 on August 5th, Gaikindo Vice Chairman for Market Development Jongkie D. Sugiarto said BYD's factory in Subang, West Java, has already started assembling vehicles.

"The BYD factory is already running, production has started," Jongkie said.

He further added that the start of local production is expected to increase domestic vehicle output. Previously, BYD sold its vehicles in Indonesia under the completely built-up (CBU) import scheme.

"I haven't been there (at the BYD factory), I haven't seen it. But that's what I've heard," he said.

Although BYD has not officially announced the start of commercial assembly operations, the company had previously targeted production to begin this year.

Earlier, during the 2026 Indonesia International Motor Show (IIMS), BYD confirmed that its Subang facility had entered the trial production phase. During the 2024-2025 period, the company's imported vehicles were sold with support from government import incentives.

Luther Panjaitan, Head of Marketing, PR and Government Relations at BYD Motor Indonesia, said the plant is prepared to manufacture vehicles that meet the Domestic Component Level (TKDN) requirements set by the Indonesian government.

"The facilities we have are fully prepared, fully recognised and equipped to produce vehicles with the Domestic Component Level (TKDN) expected by the government," Luther said.

He further added that the commissioning process involves integrating hundreds of pieces of equipment to ensure locally assembled vehicles meet production standards before reaching customers.

"Indeed, the manufacturing process involves commissioning and alignment. It involves hundreds of pieces of equipment that must be integrated. Every roll-off must be precise and error-free," he said.

BYD has not disclosed which models have entered local production, and it remains unclear which vehicles are being assembled at the plant as of August 2026. The company currently offers the Dolphin, Seal, Atto 3, Atto 1, M6 and M6 DM in the Indonesian market. In the premium segment, it also operates the Denza brand, which recently introduced the D9 EV.

Alongside its localisation efforts, BYD said it expects to maintain its position in Indonesia's EV market, citing continued demand despite broader economic uncertainty. Luther said the electrified vehicle segment has continued to grow even as consumer purchasing power has been affected by economic pressures.

"I see that the growth of electrified vehicles is quite consistent and positive. Even amidst market turmoil and economic instability, electrified vehicles remain a favourite among the public," he said in Tangerang on August 5th.

Luther said the company's expectations are based on the Indonesian government's commitment to accelerating the country's energy transition and reducing the burden of fuel subsidies. BYD plans to expand its product portfolio by introducing more electrified vehicles, including models equipped with the company's Dual Mode (DM) hybrid technology, with the aim of increasing the adoption of low-emission transportation in Indonesia.

"BYD's strategy is to continue bringing more of the best product choices to the public so they will be more willing to make the transition," he said.

The company is also expanding its after-sales operations alongside its product portfolio. Luther said BYD has established a network of 100 dealerships across Indonesia this year and plans to continue expanding its retail footprint, particularly into secondary cities, to support its expanding EV customer base.