Jakarta. Competition in Indonesia's automotive market has intensified with the entry of Chinese electric vehicle manufacturer, BYD, earlier this year. Astra International, a key player in the country's automotive industry, is embracing this challenge with optimism.

Tira Ardianti, Head of Corporate Investor Relations at Astra International, emphasized the importance of competition in business.

"Astra is committed to sustainable business practices and continuous innovation. Competition motivates us to progress and ultimately deliver the best services to consumers," explained Tira during a recent media event in Jakarta.

Tira highlighted that the arrival of BYD and the increasing competition signify positive growth in Indonesia's automotive market, fostering further innovation among industry participants.

Astra, which distributes brands such as Toyota, Daihatsu, Isuzu, Peugeot, and BMW, is proactively expanding the electric vehicle ecosystem by establishing 11 new business units.

"This plan includes the establishment of electric vehicle charging stations, battery exchange stations, battery repair services, management of used batteries, and other complementary activities," she elaborated.

Astra reaffirms its commitment to maintaining a prominent position in Indonesia's automotive industry and strengthening its competitiveness in the global arena, particularly in the rapidly growing electric vehicle market.

In 2023, Astra's car sales declined by 2 percent to 561,000 units, while its market share increased from 55 percent to 56 percent. During this period, 16 new models and eleven revamped models were launched. The group introduced one battery electric vehicle (BEV) model, the Lexus RZ, and two hybrid electric vehicle (HEV) models, the Toyota Yaris Cross and Toyota Alphard. Currently, the group sells six BEV models and thirteen HEV models in Indonesia under the Toyota, Lexus, and BMW brands.

Additionally, Tira disclosed that Astra has allocated a capital expenditure (capex) budget of Rp 32 trillion, with a significant portion allocated to the heavy equipment and mining segment, United Tractors (UT).

On March 19, Chief Investment Minister Luhut Binsar Pandjaitan announced that BYD will commence commercial production of electric vehicles in Indonesia by 2026. Luhut revealed that BYD plans to conduct the groundbreaking ceremony for its manufacturing plant in Indonesia this July. However, the minister did not specify the location of this plant within the country.

In his Instagram caption, Luhut expressed BYD's strong enthusiasm for investing in Indonesia, aiming for the commencement of commercial production at the manufacturing plant in early 2026.

Earlier this year, Chief Economic Affairs Minister Airlangga Hartarto unveiled BYD’s intentions to invest $1.3 billion in a manufacturing plant in Indonesia, boasting an annual production capacity of 150,000 units. Furthermore, BYD recently introduced three of its electric car models—Seal, Atto 3, and Dolphin—to the Indonesian market.