BYD Denies Systematically Displacing Japanese Dealers in Indonesia

The expansion of Chinese automotive brand dealership networks, including BYD, in Indonesia has recently drawn attention. In several regions, the presence of these new dealerships has been observed in locations previously occupied by other automotive brands, especially Japanese ones, including some that had operated for a long time.

Amid this growing phenomenon, PT BYD Motor Indonesia has asserted that the company has no specific strategy to replace existing dealerships of other brands. The company stated that location selection is based on business considerations and market access.

Head of Public & Government Relations PT BYD Motor Indonesia, Luther Panjaitan, firmly denied any targeted replacement strategy. “Oh no, we have never specifically stated that we are replacing existing dealers,” he said during the launch of the M6 DM in Senayan, South Jakarta, on Friday.

He explained that the availability of land and commercial buildings in strategic areas is actually quite limited. Consequently, locations considered ideal are often areas previously used by other automotive industry players. “Indeed, we also know, especially in the regions, commercial areas are limited and business districts are usually located on main roads,” he said.

This condition has led the public to see many BYD showrooms established in locations previously occupied by other brand dealers. However, according to the company, this is more due to property availability factors rather than a strategy to take over competitor networks.

BYD considers locations on main roads to remain the most effective choice for introducing products and bringing services closer to consumers. For this reason, the company tends to choose areas that are already known as centres of automotive business activity. “One of BYD’s strategies is that we must place our sales network in strategic locations,” Luther stated.

The company also emphasised that the emergence of BYD dealerships in several former showroom locations of other brands does not signify an effort to displace or replace competitors. According to Luther, this situation occurs because many brands have similar considerations regarding location when developing their businesses. “So it indirectly appears as if they are side-by-side. That is the only reason, there is no specific intention to replace other brands,” Luther said.