- BYD opened a full-capacity Subang plant (stamping, welding, paint, assembly) to localize manufacturing amid Indonesian policy shifts requiring higher domestic component content (TKDN) by 2026–2030.
- Plant investment ~11.7 trillion IDR (~USD 740 million) for 150,000 annual capacity; current output serves Indonesia with models Atto 3, Dolphin, Seal, M6, Denza D9 and hiring ramp to 20,000.
- Moves target regional export potential and undercuts CKD rivals; timeline risks include meeting rising TKDN rules, local supply-chain scaling and fierce competition from local and Chinese marques.
On Sept. 3, BYD had officially inaugurated its plant in Subang, West Java, Indonesia.
Located in the Subang Smartpolitan industrial park, the plant covers 126 hectares and represents an investment of about 11.7 trillion Indonesian rupiah, with planned annual production capacity of 150,000 vehicles.
Unlike the CKD (completely knocked down) assembly model used in some overseas markets, the Subang plant has full vehicle manufacturing capabilities, covering four core processes: stamping, body welding, painting and final assembly.
The move shifts BYD’s Indonesian production model further toward localized manufacturing, rather than simply shipping vehicle components to Indonesia for local assembly.
The plant’s opening comes as the Indonesian government signals plans to further increase the share of locally manufactured components in electric vehicles.
Indonesian Industry Minister Agus Gumiwang Kartasasmita said at the inauguration that the government has begun studying a plan to link EV incentives to the domestic component level, known as TKDN.
Agus said products with higher TKDN levels would receive greater government attention, with preparations for incentive policies also expected to prioritize them.
Under Indonesia’s existing EV development roadmap, the minimum TKDN requirement is set to rise progressively, from 40% in 2026 to 60% in 2027-2029 and 80% in 2030.
For automakers that have already established vehicle manufacturing plants in Indonesia, the policy shift will make supply-chain localization increasingly important.
In terms of employment, the Subang plant has hired more than 5,000 Indonesian workers during its initial production phase.
BYD Vice President Liu Xueliang said the company plans to increase its local workforce to 20,000 as the plant gradually reaches full production capacity.
Vehicles produced at the Subang plant are currently mainly intended for the Indonesian domestic market. Models displayed at the site included the Atto 3, Dolphin, Seal, M6 electric MPV and Denza D9.
Liu said the plant will also assess the possibility of exporting vehicles to neighboring countries.
If export plans move forward, the Subang plant could evolve from a local supply base for Indonesia into a regional production hub serving Southeast Asia.
BYD’s increased investment in Indonesian local production comes amid rapid growth in the country’s new-energy vehicle market over the past two years.
According to data from the Indonesian Automotive Industry Association (GAIKINDO), BYD’s local sales have grown to roughly three times their 2023 level.
In July 2026, BYD’s wholesale sales in Indonesia reached 6,569 units, up 181.3% year on year and giving the company an 8.1% market share, enough to rank third.
Its retail sales totaled 5,240 units during the same month, ranking fifth.
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