In the past three years, a number of Chinese electric car manufacturers have become increasingly aggressive in entering the Indonesian automotive market by offering affordable vehicles with advanced features.
Although new car sales in Indonesia have declined, Chinese brands remain interested in expanding into the country due to the tight competition in their domestic market and the existence of tax incentives for imported cars in Indonesia.
Fierce price competition in China has forced manufacturers such as SAIC Motor and BYD to seek new markets, with Chinese car exports to Indonesia doubling in the 2021–2024 period, reaching a value of USD 3.2 billion.
In addition, China's electric car production capacity of 20 million units per year—but only around 11 million are sold in the domestic market—has encouraged manufacturers to increasingly rely on exports to maintain their business continuity.
