The growth of the electric vehicle (EV) market in Indonesia has prompted several manufacturers to strengthen their manufacturing bases and increase local production.

According to data from the Association of Indonesian Automotive Industries (Gaikindo), wholesale distribution of battery electric vehicles (BEVs) between January and July 2026 increased by 88.62% year on year (yoy).

The development of the BEV, hybrid electric vehicle (HEV) and plug-in hybrid electric vehicle (PHEV) markets is also expected to influence automotive industry activity during the second half of 2026. BYD Motor Indonesia is among the manufacturers expanding its production base. The Chinese manufacturer is scheduled to inaugurate its electrified vehicle manufacturing facility in Subang, West Java, on September 3rd, 2026.

Luther Panjaitan, Head of Public and Government Relations at BYD Motor Indonesia, said the facility's construction forms part of the company's long-term plans to develop a new energy vehicle ecosystem in Indonesia.

"As part of BYD's long-term commitment in Indonesia, we have completed the construction of a new energy vehicle assembly facility in Subang Regency, West Java, on an area of 126 hectares," Luther wrote in a ceremonial invitation received by a local daily and quoted on August 31st, 2026.

According to Panjaitan, the manufacturing facility forms part of the development of Indonesia's national electric vehicle industry. The factory is expected to expand manufacturing activities, create employment opportunities and increase the involvement of domestic supporting industries. BYD is also expanding its sales and after-sales service network across various regions of Indonesia.

"Indonesian public trust in BYD continues to grow, as reflected in the planned delivery of BYD's 100,000th vehicle in Indonesia," he wrote.

BYD's Subang factory is designed for large-scale vehicle production. The facility forms part of BYD's investment in Indonesia, which amounts to approximately IDR 11.2 trillion (US$ 630 million). BYD currently markets the Atto 1, Atto 3, Dolphin, Seal, Sealion 7, M6 and M6 Dual Mode (DM) in Indonesia.

According to Gaikindo data, BYD's wholesale sales between January and July 2026 increased by 81.6% yoy. Meanwhile, BYD's retail sales during the first seven months of 2026 increased by 72% yoy.

VinFast expands Subang manufacturing operations

Vietnamese electric vehicle manufacturer VinFast is also expanding its manufacturing base in Subang, West Java. During its initial operational phase, the facility employed around 1,700 workers. VinFast Indonesia CEO Arunodoy Das said that after more than two years of operations in Indonesia, the company is continuing to develop its electric vehicle business by expanding its product portfolio, distribution network and after-sales services.

VinFast also plans to gradually increase production capacity at its Subang factory while expanding its V-Green charging infrastructure across Indonesia.

"We believe that the transition to green mobility requires a complete ecosystem to provide a convenient and worry-free vehicle ownership experience for consumers," he said, as quoted on August 31st, 2026.

To support human resource development, VinFast provides three to four months of training to managerial staff in Vietnam and brings experts from Vietnam to train local technicians in Indonesia. Alongside plans to increase production capacity, the facility is expected to expand its workforce and training programmes for local employees.

In the Indonesian market, VinFast markets the VF3, VF6, VF7, VF MPV 7 and Limo Green. The company has invested more than US$ 300 million in its Subang production facility. In the medium term, VinFast is targeting total investment of US$ 1 billion in Indonesia. The factory's production capacity is also planned to increase to meet domestic and export demand.