Indonesian Political, Business & Finance News

XPENG Accelerates Right-Hand-Drive Variant Production Collaboration as Principal Takes Control

| | Source: KOMPAS Translated from Indonesian | Business
XPENG Accelerates Right-Hand-Drive Variant Production Collaboration as Principal Takes Control
Image: KOMPAS

JAKARTA — A strategic step has been taken by XPENG’s global principal to strengthen its position in Indonesia’s automotive market. The Chinese electric-vehicle brand is reported to have taken full ownership of the shares for its Indonesian operations.

Iki Wibowo, XPENG Indonesia’s CEO, revealed that the full share acquisition by the principal is aimed at building closer cooperation in the future and speeding up the collaboration process.

One crucial impact of this ownership transition is a strong push to accelerate the availability of right-hand-drive variants.

With direct investment in the form of share ownership from the central principal, the Indonesian automotive market is expected to receive much greater attention. The central body will be more keen to understand the specific needs of domestic consumers.

At present, XPENG’s product line that has adopted the global right-hand-drive configuration remains quite limited. Only two models are known to feature it: the XPENG G6 crossover and the XPENG X9 premium MPV.

However, the story would differ if potential sales were assessed cumulatively or in collaboration at a regional level.

“So cumulatively, perhaps the volume would be enough; they would certainly consider producing right-hand-drive,” Iki said.

Although ownership control of the company is now fully held by the global principal, Iki emphasised that this does not automatically make the product policy direction rigid.

Regarding which models will be produced or brought forward, the actual policy direction remains in the hands of the market.

“Control actually lies with the consumer,” Iki said.

For information, to strengthen localisation and reduce production costs, XPENG’s electric vehicles are currently assembled locally at a assembly facility located in Purwakarta.

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