Farizon and BAIC are expanding their electrification strategies in Indonesia, with both Chinese automotive brands planning local production and introducing additional electric vehicle technologies to the market.

Farizon to assemble additional electric commercial vehicle locally

Following the V8E, Farizon will also locally assemble the F3E using the facilities operated by Handal Indonesia Motor (HIM) in Purwakarta, West Java. The start of local assembly of electric commercial vehicles will make Indonesia the location of the company's first overseas knocked-down (KD) production project.

Farizon's investment in local assembly is part of its plans for Indonesia's electric commercial vehicle market. According to Christoforus Ronny, Director of Arista Manufacturing Indonesia, the investment required for assembly ranges from IDR 40 billion to IDR 50 billion (US$ 2.24 - 2.8 million) per model.

"The range is between IDR 40 billion and IDR 50 billion for one model. But for the addition of other common models, the increase won't be much," Ronny said.

The investment covers equipment required for the assembly process, including filing machines, couplers, jigs and other specialised tools and equipment.

Farizon entered the Indonesian market in January 2026 and, together with Arista as its local distributor, has developed its operations through market development, distribution and product introductions. Local assembly will add Indonesia to Farizon's manufacturing chain alongside its role as a destination market.

Ronny said the move was related to demand from the transportation and logistics sectors. Commercial vehicles are used for goods distribution, logistics, transportation and public services.

"Electrification in this segment is not only related to changes in vehicle technology, but also affects operational efficiency and the direction of more sustainable transportation development," he said.

As Farizon's official distributor, Arista is responsible for connecting the company's products and technologies with the requirements of commercial vehicle users across different sectors. Farizon, which operates under Geely Holding Group, is targeting applications including logistics, transportation, urban distribution and public services.

"This is a major step for Arista, Farizon, and Handal, marking the beginning of a new chapter in the development of the electric commercial vehicle ecosystem in Indonesia. This collaboration is not only strategic, but also a concrete manifestation of our shared commitment to supporting the transformation of the national automotive industry toward the era of electrification," Ronny said.

BAIC to begin T1 local production by December 2026

BAIC is preparing to shift production of its newly launched T1 electric car from completely built-up (CBU) imports to local assembly in Indonesia. The company said it received orders for 139 units of the T1 during GIIAS 2026.

"We have now started delivering the T1," said Dhani Yahya, Chief Operating Officer of BAIC, in Bandung, West Java, on August 18th.

Yahya said BAIC was proceeding with preparations for local production following the response to the T1 during GIIAS 2026. The company is refining the processes required to shift the model from CBU imports to local assembly.

"This is a bit long (assembly in Indonesia), hopefully in December production will begin at the Handal Indonesia Motor factory," Yahya said.

The T1 will also be assembled at the Handal Indonesia Motor facility in Purwakarta. Local production could allow BAIC to reduce the vehicle's price in Indonesia. The T1 uses the brand's Arc-Flow design philosophy, with a minimalist exterior. The front features connected daytime running lights and a centrally positioned BAIC logo.

It measures 4,337mm in length, 1,860mm in width and 1,572mm in height, with a 2,770mm wheelbase. BAIC says the dimensions provide a relatively spacious cabin for its segment.

On the inside, it features an 8.8-inch LCD digital instrument panel and a 15.6-inch floating touchscreen for vehicle controls and entertainment. Other equipment includes a 2.34-square-metre panoramic glass roof, smartphone connectivity and over-the-air (OTA) software updates.

Power comes from a 95PS electric motor paired with a 42.3kWh lithium iron phosphate (LFP) battery supplied by CALB. The T1 has a claimed WLTC driving range of up to 350km.

The T1 is priced at IDR 373 million on-the-road (OTR) Jakarta, although this price applies only during the promotional period.

BAIC plans REEV model for 2027

Beyond its battery electric vehicle (BEV) range, BAIC is considering introducing range-extended electric vehicle (REEV) technology in Indonesia in 2027. BAIC Indonesia chief operating officer (COO) Dhani Yahya said the company expects to introduce REEV technology next year.

"We'll see REEV next year (2027)," Yahya said in Bandung on August 18th, 2026.

BAIC has several models available in China that could potentially be introduced in Indonesia with REEV technology. According to Yahya, these include the BJ41 or BJ40 Pro, as well as the T5 and V9, with the latter potentially available in both REEV and BEV configurations.

REEV technology differs from a conventional hybrid system because the vehicle's wheels are driven entirely by an electric motor. The petrol engine is not mechanically connected to the wheels; instead, it functions as a generator that produces electricity to recharge the battery when its charge level becomes low.

Under certain conditions, the petrol engine automatically operates to generate additional electricity. The battery can also be charged externally, similar to a conventional battery electric vehicle.

REEVs differ from both BEVs and plug-in hybrid electric vehicles (PHEVs). A BEV relies entirely on its battery to power an electric motor and must be recharged using an external power source. A PHEV uses both a petrol engine and an electric motor to drive the wheels, with the two power sources operating separately or together depending on driving conditions.

BAIC's plan to introduce REEV technology by 2027 would add an additional powertrain option to its BEV range. The company sees REEVs as an option for Indonesian consumers concerned about driving range and access to charging infrastructure.