Citroen Partners with Indomobil to Manufacture Electric Vehicles in Indonesia

Citroen partners with Indomobil to manufacture electric cars in Indonesia, leveraging government incentives and local content requirements. This move aims to boost Citroen's presence in the growing Indonesian EV market.

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Mazhar Abbas
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Citroen Partners with Indomobil to Manufacture Electric Vehicles in Indonesia

Citroen Partners with Indomobil to Produce Electric Cars in Indonesia

Citroen, a French automaker, is collaborating with Indomobil, an Indonesian assembling company, to begin manufacturing electric vehicles in Indonesia. The first model to be produced locally is the E-C3, which will be assembled at Indomobil's facility in Purwakarta, West Java. Production is slated to commence in June 2023.

The partnership between Citroen and Indomobil aims to leverage the electric vehicle incentives offered by the Indonesian government to foreign car manufacturers. By producing EVs locally, Citroen can take advantage of these incentives. The government has also eased the local content requirements for EV manufacturers, allowing them until 2026 to meet the minimum 40 percent domestically sourced component threshold.

Initially, 20 to 40 percent of the components for the E-C3 will be locally sourced. Citroen's decision to start local production in Indonesia is part of its strategy to make a comeback in the Indonesian market after a previous unsuccessful attempt. The company believes that manufacturing vehicles locally will enable it to offer its models at more competitive prices and better cater to the market's demand.

Why this matters: Citroen's partnership with Indomobil to produce electric cars in Indonesia reflects the growing trend of automakers establishing local manufacturing facilities to tap into the country's EV market potential. This move aligns with Indonesia's goal of becoming a major player in the global electric vehicle industry.

The relaxed policies and incentives introduced by the Indonesian government have attracted the interest of other automakers as well. China's BYD and Chery, along with Vietnam's Vinfast, are also planning to set up EV manufacturing plants in Indonesia. The E-C3, being an affordable and popular electric vehicle, is not only expected to cater to the Indonesian market but also has the potential for export to other countries, helping Citroen expand its sales figures.

Key Takeaways

  • Citroen partners with Indomobil to manufacture EVs in Indonesia, starting with E-C3 in 2023.
  • Indonesia offers EV incentives to attract foreign automakers, relaxing local content requirements.
  • Citroen aims to offer competitive prices and cater to the Indonesian market through local production.
  • Other automakers like BYD, Chery, and Vinfast also plan to set up EV plants in Indonesia.
  • E-C3 is expected to cater to the Indonesian market and have export potential for Citroen.