Chinese EV maker Xpeng is set to enter Indonesia this year, exclusively distributed through Erajaya Active Lifestyle (ERAL).

Xpeng's arrival in the country could intensify competition in the already competitive EV market.

A memorandum of understanding (MoU) was signed by Alex Tang, Xpeng's Head of International Division of Sales and Service, and Djohan Sutanto, ERAL's CEO. ERAL is known for its retail operations in electronics, clothing, and lifestyle products. This will be the company's first venture into automotive distribution. In addition to distribution, ERAL will also support assembly and post-sales service. However, Xpeng will assemble the vehicles before shipping them to Indonesia, adhering to a completely knocked-down (CKD) scheme.

''We are proud to collaborate with Xpeng, one of the world's leading EV players, to drive the development of the electric vehicle industry in Indonesia,'' said Sutanto. ''The MoU signing with Xpeng is an important milestone in ERAL's journey, marking a strategic step into the electric vehicle (EV) business as their brand-holder sole distributor. We are excited to be part of this transformation and to contribute to the growth of the EV sector in Indonesia.''

ERAL will introduce Xpeng to the market with the EV maker's flagship models, the Xpeng G6 and Xpeng X9. Reports suggest that Xpeng's debut in February 2025 will coincide with the Indonesia International Motor Show (IIMS) 2025.

''Our partnership with ERAL marks an important step in Xpeng's global expansion,'' said Tang. ''We are excited to introduce Indonesian consumers to a new standard in electric mobility, combining innovative technology with exceptional design to deliver an unparalleled experience that meets the demands of today's drivers.''

Xpeng is a Guangzhou-based EV manufacturer specialising in smart vehicles with AI-integrated mobility features. The company aims to ''set a new standard in Indonesia'' with its range of smart EVs.

According to Tang, Xpeng has observed the growing adoption of EVs in Indonesia and is keen to support the country's transition towards a more sustainable future. ''With a vision for AI-defined mobility, we aim to revolutionise the driving experience in Indonesia, making it safer, smarter, more sustainable, and more enjoyable in the near future. We are excited to partner with ERAL to shape the future of mobility in Indonesia,'' he said.

Xpeng's planned partnerships in Southeast Asia currently include Indonesia and Thailand. The company first entered the region's burgeoning EV market in Thailand in 2024 before expanding into Malaysia and Singapore later that year.

The company boasts a five-star rating from Euro NCAP for its G6 model. However, the ASEAN NCAP has yet to rate an Xpeng vehicle.