Local Production of Chinese Car Brands in Indonesia Doubles

The local production volume of Chinese-brand cars in Indonesia doubled in the January-April 2026 period compared to the same period last year. Beyond keeping prices competitive, several analysts view this local assembly as proof of Chinese manufacturers’ seriousness regarding after-sales service for Indonesian consumers. According to data compiled in the latest report by the Association of Indonesian Automotive Industries (Gaikindo), the cumulative production volume of Chinese brands in the first four months of this year reached 27,939 units, soaring 99.7 percent compared to the same period the previous year, which was 13,991 units. With this realisation, Chinese automotive manufacturers, the majority of which assemble electric vehicles, have contributed approximately 6.9 percent to national car production, up from 3.8 percent last year. The twofold growth recorded by Chinese brands is also higher than the 9.5 percent increase in overall car production recorded during the period. Automotive industry observer and academic at the Bandung Institute of Technology (ITB), Yannes Martinus Pasaribu, assessed that local production by Chinese brands is a strategy to maintain more competitive unit selling prices in the domestic market following the end of several government incentives for completely built-up car imports, particularly electric vehicles. By localising production to drive more competitive vehicle pricing, the presence of these Chinese brands is considered to have contributed to making Indonesia’s automotive industry structure more fluid by reducing the decades-long single dominance of Japanese brands. ‘This local assembly activity is also crucial for providing evidence of corporate commitment that reduces consumer uncertainty over the continuity of long-term after-sales service,’ Yannes told Xinhua. The impressive growth in local assembly by Chinese manufacturers in 2026 is primarily driven by newcomer brands such as Jaecoo and Geely. Even though both brands only debuted in Indonesia in early 2025, Jaecoo has locally assembled more than 11,000 vehicles. Meanwhile, Geely’s local production has approached 5,000 units in January-April 2026. Alongside these two brands, other popular Chinese brands such as Wuling and Chery have also locally assembled thousands of vehicles.