Indonesia and SAIC Motor Strengthen EV Industry Cooperation

KBRN, Jakarta: Indonesian Industry Ministry held a strategic meeting with Chinese automotive giant SAIC Motor Corp in Shanghai, On October 9, 2025, to discuss how both parties can deepen cooperation in the electric vehicle (EV) sector, enhance local production, and expand exports across the ASEAN market.

The meeting is led by Vice President Zang Qing. The talks focused on enhancing bilateral cooperation in the automotive sector, particularly in the development of environmentally friendly vehicles and expanding exports to the ASEAN region.

Also attending the meeting was PT SGMW Motor Indonesia CEO, Tang Wensheng. SGMW is a joint venture between SAIC, General Motors, and Wuling Motors, operating in Indonesia since 2015.

Secretary General of Indonesia’s Industry Ministry Eko S.A. Cahyanto expressed Indonesia’s appreciation for SAIC Group’s contributions to the development of the electric vehicle (EV) ecosystem in Indonesia.

“We value SAIC's ongoing support and hope to see continued collaboration, especially in expanding the line-up of eco-friendly vehicles tailored to Indonesian consumers,” he said in an official release from Jakarta on Friday, October 10, as quoted by kemenperin.go.id.

SAIC Motor Corp, a state-owned automotive company headquartered in Shanghai, is one of China’s largest vehicle manufacturers. It owns prominent brands such as Wuling, MG, Baojun, and Maxus. The company is engaged in research, development, manufacturing, and sales of vehicles and components globally.

SAIC operates four major international manufacturing bases: in Pakistan, India, Thailand, and Indonesia. Its annual sales in Europe alone have reached three million units. Through its local subsidiary, PT SGMW Motor Indonesia, SAIC aims to establish Indonesia as a production hub for right-hand drive countries.

As of now, SAIC’s Wuling and MG brands have launched 19 models in Indonesia, with 13 produced locally.

Eko highlighted PT SGMW Motor Indonesia’s ongoing efforts to bolster domestic manufacturing. Since 2015, the company has developed a full-scale automotive plant and a supplier park in Cikarang. It has also launched local EV battery production under the brand MAGIC Battery Wuling, contributing to Indonesia’s national EV ecosystem.

“We commend PT SGMW Motor Indonesia for manufacturing commercial electric vehicles with a local content (TKDN) rate above 40 percent. This reflects a strong commitment to supporting Indonesia’s low-emission automotive transition,” he emphasized.

PT SGMW currently works with over 77 local suppliers across tier 1, 2, and 3 levels. The company aims to increase its battery electric vehicle (BEV) local content to 60–80 percent, in line with government policy.

This includes local battery production through collaboration with PT Gotion and CATL via PT Unified Advanced Battery System Indonesia (UABS).

By 2025, PT SGMW targets export contributions to surpass 11 percent of its total production, aiming to ship nearly 10,000 units to 15 countries. The company is also investing in developing various vehicle types, including internal combustion engine (ICE) cars, hybrid electric vehicles (HEVs), battery electric vehicles (BEVs), and soon, plug-in hybrid electric vehicles (PHEVs).

One of the upcoming models is the SUV-C, designed with high fuel efficiency and rapid acceleration capabilities.

Beyond domestic sales, SAIC is strategically expanding into ASEAN. By 2025, it plans to operate over 170 sales and service outlets in Indonesia, covering Wuling, MG, and Maxus brands. A dual-brand showroom is also under development in Jakarta to strengthen its regional presence.

During the meeting, SAIC Motor requested continued government support, including the extension of PPNDTP (domestic component tax incentives) for passenger BEVs and buses, as well as its expansion to commercial BEVs like the locally produced MitraEV.

They also sought support for Wuling and MG models using HEV, PHEV, and range-extended electric vehicle (REEV) technologies to be categorized as low-carbon emission vehicles (LCEV).

Eko acknowledged the proposals, stating that the Industry Ministry appreciates SAIC’s investment and SGMW’s achievements in local BEV production.

“The request to extend and broaden PPNDTP incentives is currently under internal review by the government,” he noted.

He added that the government encourages PT SGMW to expand its product line in Indonesia and increase investment to boost TKDN levels.

Indonesia is also urging SAIC to explore scaling up EV exports from Indonesia to solidify the country’s role as an EV production and export hub in ASEAN.

“We hope SAIC will provide further information on its future investment plans in Indonesia, particularly regarding electrification platforms and new technologies,” he added.

He emphasized that strategic collaboration between governments and global automotive players like SAIC is essential for accelerating Indonesia’s transition toward EV leadership.

“Indonesia is fully committed to becoming a key player in the global EV supply chain, and we see SAIC as a critical partner in achieving that vision,” he affirmed.

The Industry Ministry continues to foster a conducive investment climate and supportive incentives for EV production and its components, such as batteries and electric drive systems.

“With strong synergy between the government and industry players, we are confident that Indonesia can become a regional EV hub,” Eko concluded. ***