Indonesian Political, Business & Finance News

Not Just the Products, iCar Accessories Will Also Be Produced Locally

| | Source: KOMPAS Translated from Indonesian | Business
Not Just the Products, iCar Accessories Will Also Be Produced Locally
Image: KOMPAS

WUHU, KOMPAS.com – iCar Indonesia has confirmed that all products marketed in the country, including the V23, will be assembled locally using a completely knocked down (CKD) scheme at the manufacturing facility of its partner, Chery Group Indonesia. Interestingly, the localisation efforts are not limited to the main vehicle components but also include accessories. iCar will combine imported components with domestic production to improve cost efficiency. “Everything that reaches consumers will be CKD, including accessories. There are still some imports, but part of it will be produced locally. So we will combine them,” said iCar Indonesia’s Product Planning Manager, Tommy Hermansyah, in Wuhu, China, on Tuesday (28/4/2026). “If it’s CKD, it’s clearly more efficient. We can’t confirm the figures yet, but the impact is quite significant because the taxes are different,” he added. Besides efficiency, domestic assembly also offers advantages in adapting products to Indonesian market needs, including the availability of accessories. Tommy added that the current domestic content level (TKDN) for the V23 is around 20%. In the future, iCar targets a gradual increase by focusing on core components. “It’s currently around 20%, but we will pursue the main components, such as large parts up to batteries, so we can reach a minimum of 40%,” he said. Regarding batteries, iCar is open to local production if the industrial ecosystem is adequate. He emphasised that localising components, including accessories, is also important for maintaining quality and facilitating after-sales service. “With local production, we can more easily maintain quality while ensuring the warranty remains optimal. This is important for consumer comfort,” he stated.

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