BYD's Strategy Following the End of Electric Vehicle Import Incentives

Jakarta – The government has confirmed that import incentives for completely built-up (CBU) electric vehicles will not be extended after 31 December 2025. The assurance was provided by Minister of Industry Agus Gumiwang Kartasasmita.

Until now, the government has provided various relaxations for electric vehicle manufacturers still importing vehicles as complete units. The scheme has included exemptions from import duties, reductions in luxury goods sales tax (PPnBM), and value-added tax (PPN). This means each imported electric vehicle must be balanced with a commitment to equal-value local production investment.

In response to the policy, BYD Motor Indonesia’s President Director Eagle Zhao stated that the company remains focused on delivering products at competitive prices through technological strength and production efficiency. According to him, one of BYD’s key strengths lies in vertical integration, which enables the company to control various production processes more efficiently.

“One of BYD’s strengths is vertical integration, combined with our research and development capabilities. Usually when we launch a new model, it also comes with an affordable price point. BYD remains focused on this strategy and plan to meet the diverse needs that exist in Indonesian society,” said Eagle during a meeting in Central Jakarta on Monday, 9 March 2026.

Vertical integration allows BYD to independently manufacture various key electric vehicle components, including batteries and electric drive systems. BYD believes this strategy will remain the company’s primary focus in developing the electric vehicle market in Indonesia, even after government incentives have ended.

Moving forward, BYD is also committed to continuing to bring electric vehicle models in line with consumer needs in the country.