Local Production of Chinese Car Brands in Indonesia Doubles

Jakarta (ANTARA) - The local production volume of Chinese car brands in Indonesia has doubled during the January-April 2026 period compared to the same period last year.

Beyond maintaining competitive pricing, industry observers view this local assembly as evidence of the commitment of Chinese manufacturers to providing after-sales services for Indonesian consumers.

According to data compiled in the latest report from the Association of Indonesia Automotive Industries (Gaikindo), the cumulative production volume of Chinese brands in the first four months of this year reached 2ally 27,939 units, a 99.7 per cent surge compared to the 13,991 units recorded in the same period last year.

With this achievement, Chinese automotive manufacturers, the majority of which assemble electric vehicles, have contributed approximately 6.9 per cent to national car production, up from 3.8 per cent last year.

The twofold growth recorded by Chinese brands is also higher than the 9.5 per cent increase in overall car production recorded during the same period.

Automotive industry observer and academic at the Bandung Institute of Technology (ITB), Yannes Martinus Pasaribu, suggests that local production by Chinese brands is a strategy to maintain competitive unit prices in the domestic market following the end of several government incentives for imported completely built-up (CBU) cars, particularly electric vehicles (EV).

By localising production to drive more competitive vehicle prices, the presence of these Chinese brands is seen as contributing to a