BYD, the world’s largest electric vehicle (EV) maker, backed by Warren Buffett’s Berkshire Hathaway, has taken a step towards building its second assembly plant in Southeast Asia by signing a preliminary agreement with the Indonesian government, reports the South China Morning Post. The Shenzhen-based carmaker plans to build an ecosystem to explore development opportunities in Indonesia, its government said in a statement last week. The Indonesian government did not provide further details, and BYD said it would not comment any further on the agreement.
“Southeast Asia will become a key growth market for Chinese EV companies because of its dense population and the rising demand for green vehicles,” said Gao Shen, an independent analyst in Shanghai. “Chinese-made EVs have been well received in these countries and companies like BYD are welcome to set up production lines there.”
The deal shows that Indonesia, with a population of 280 million, is racing ahead of Vietnam and the Philippines, the two other Southeast Asian nations looking to build their EV industries. Hanoi and Manila have also invited BYD to build plants in their countries, according to Bloomberg.