XPENG Begins Assembling EVs in Indonesia, Eyes Regional Hub in Purwakarta

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JAKARTA, investortrust.id — Chinese electric vehicle maker XPENG has officially launched local assembly of its cars in Purwakarta, West Java, marking its first production milestone in Indonesia as part of a long-term strategy to establish an integrated electric vehicle (EV) ecosystem.

The move follows successful trial runs and quality control checks at the facility, according to Group Chief Strategy Officer of Erajaya, Patrick Adhiatmadja. Erajaya is XPENG’s local partner in Indonesia.

“Our local production in Purwakarta is ready. We’ve completed testing and external quality control processes. We are now prepared to begin full-scale operations,” Patrick said during the launch of XPENG’s first flagship dealership in Puri Indah, West Jakarta, on Friday, July 4, 2025.

Purwakarta was chosen for its strategic location and logistical advantages for the automotive supply chain. The site is expected to serve as the foundation for XPENG’s broader goal of building a localized EV ecosystem in Indonesia.

“We see Purwakarta as an ideal base for EV expansion, both for distribution and supporting infrastructure,” Patrick said.

The initial production will have a local content level of around 40%, which XPENG plans to increase as the domestic supply chain matures.

“That target is embedded in our production planning. If we weren’t ready, we wouldn’t have started,” he added.

While the move supports XPENG’s manufacturing presence in Indonesia, the company emphasized it would not engage in aggressive price competition.

“We aim to be consistent. If the car is priced at Rp 600 million ($37,000), we’ll maintain that. Price stability builds trust and customer loyalty,” Patrick said.

XPENG also expressed confidence in the prospects of Indonesia’s premium EV segment, despite broader economic uncertainty.

“This market still has room to grow. We believe the upper-class segment will continue to spend, even during economic turbulence,” he said.

In the long run, the Purwakarta facility is expected to become more than just a production base. XPENG envisions it as a regional hub for the ASEAN EV market, with potential for export to neighboring countries.