Chinese automotive manufacturer Chery has confirmed plans to establish a manufacturing plant in Indonesia with operations targeted to begin in 2027, marking a significant expansion of the company's Southeast Asian presence as it seeks to capitalize on the country's growing automotive market and electric vehicle adoption.
Chery officials announced the investment during discussions with Indonesian government representatives, though specific details about the factory's location, production capacity, and total investment value have not been fully disclosed, while industry sources suggest the facility could potentially produce both conventional and electric vehicles to serve domestic demand and regional export markets.
Reports have emerged indicating that Chery may acquire the existing Handal manufacturing facility to expedite its entry into Indonesian production, though company representatives have not officially confirmed the acquisition rumors, with industry observers noting that utilizing an established plant would allow faster market entry compared to constructing an entirely new manufacturing complex.
The Indonesian automotive industry association Gaikindo has responded cautiously to the acquisition speculation, stating that any transfer of manufacturing assets would need to comply with local content requirements, labor regulations, and investment commitments that support domestic automotive ecosystem development including local supplier partnerships and technology transfer arrangements.
Chery's planned Indonesian manufacturing presence aligns with the country's automotive industrialization strategy and electric vehicle roadmap, which offers incentives for manufacturers investing in local EV production, battery assembly, and charging infrastructure, positioning Indonesia as Southeast Asia's emerging automotive hub alongside established production centers in Thailand and attracting Chinese automakers seeking to expand their global footprint beyond saturated domestic markets.
