What’s new: Chinese automakers are motoring into Indonesia, betting on the country’s fledgling green transition to compete with the dominant Japanese brands in Southeast Asia’s largest economy.
China’s largest SUV and pickup truck maker Great Wall Motor Co. Ltd. and electric car startup Hozon Auto made their debuts at the Indonesia International Motor Show this week, marking their formal entry into the market.
Hozon, which makes Neta-branded electric cars, said during the event it is poised to start sales in Indonesia in the fourth quarter. Last month, Hozon announced a partnership with PT Handal Indonesia Motor, aiming to start local production in the second quarter next year.
Background: Great Wall and Hozon have been gearing up expansions in Southeast Asia, counting on the region’s fast-growing auto demand.
Earlier this month, Great Wall launched sales of its H6 hybrid electric vehicle in Vietnam and announced a plan for local assembly in 2025. The Hebei-based automaker has entered Southeast Asia markets including Thailand, Malaysia, Laos, Brunei, the Philippines and Cambodia.
Hozon is also selling cars in Thailand, Malaysia and Brunei.
Indonesia has the largest auto market in Southeast Asia. Sales rose 18.1% in 2022 to 1.05 million vehicles in 2022, according to auto industry information provider Marklines.
Japanese brands such as Toyota, Daihatsu and Honda dominate the market with a combined market share of more than 62.5%.
Chinese carmakers are searching for new business opportunities abroad as domestic growth slows. Indonesia’s green transition initiative offers great potential. In a July interview with Caixin, Indonesian President Joko Widodo said the country plans to produce 600,000 electric vehicles and 2.4 million electric motorcycles by 2030.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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