BYD Indonesia Affirms No Rise in Car Prices Yet

Jakarta — The rise in raw material costs and components for electric vehicles is beginning to press on the global automotive industry. This situation has been triggered by surging supply-chain costs due to geopolitical tensions and rising prices of essential materials such as lithium and semiconductor chips. The impact is already being felt by several electric vehicle manufacturers in China, with some brands reportedly adjusting product prices as production costs continue to rise. “Indeed, it does lead to fluctuations in production costs. But what I want to say is that BYD in Indonesia is making long-term investments,” said Luther Panjaitan, Head of Public & Government Relations at PT BYD Motor Indonesia, in Jakarta, on Monday (18 May 2026). Luther explained that BYD had anticipated various market challenges from the outset when deciding to expand into Indonesia. Accordingly, the company remains optimistic about its strategy, both in terms of products, pricing, and promotions. “And to date we remain positive and confident in the strategies we have — both in terms of products, pricing, and the promotions we will undertake,” he said. Amid a weakening rupiah against the US dollar and rising costs of imported components, BYD has confirmed that it has not yet adjusted the selling price of its electric vehicles in the domestic market. The company believes that cost pressures can be anticipated through the business strategies and efficiencies it has prepared in advance. After earlier talk of price wars, several manufacturers are now raising their vehicle price tags due to rising production costs. Some brands such as BYD, Xiaomi, Volkswagen (VW), and Toyota have reportedly begun adjusting prices on vehicles or additional features. The surge in battery raw material costs for batteries such as lithium carbonate and the rise in automotive memory-chip prices are the main drivers of rising production costs for electric vehicles in China.