Xpeng Expands Indonesia Manufacturing Presence Through Erajaya Stake Acquisition

Xpeng has strengthened its manufacturing footprint in Southeast Asia after securing a controlling stake in an automotive manufacturing entity owned by Indonesia’s Erajaya Group. The move is expected to accelerate the company’s localized production strategy in Indonesia, one of the region’s fastest-growing electric vehicle markets. According to a filing submitted to the Indonesia Stock Exchange, PT Sinar Eka Selaras Tbk transferred the majority ownership of PT Era Industri Otomotif to Xpeng, giving the Chinese EV manufacturer direct control over local production operations.

The transaction became effective on May 13 and involved the transfer of 154,072 shares from Erajaya Active Lifestyle to Xpeng International Holding (Hong Kong) Limited. Following the acquisition, Xpeng now holds a 90.1% ownership stake in PT Era Industri Otomotif, while Erajaya retains the remaining 9.9% minority stake. The ownership restructuring is designed to support the scaling of local production activities while maintaining operational continuity in Indonesia’s automotive sector.

ERAL Corporate Secretary Badar Teguh Mancik Alam stated that the ownership transition would not create any material impact on the company’s financial condition or day-to-day operations. Distribution, sales, and after-sales support activities for Xpeng vehicles in Indonesia will continue to be handled by PT Era Inovasi Otomotif and PT Era Dealer Otomotif, both of which remain part of Erajaya’s operational structure. Meanwhile, PT Era Industri Otomotif will continue operating as a dedicated production and assembly entity for Xpeng vehicles.

Xpeng Expands Localized Production Strategy in Indonesia

Xpeng officially entered the Indonesian automotive market in March 2025 through a dealership partnership with Erajaya Group. The company has since accelerated its regional manufacturing strategy by focusing on localized production capabilities. In July 2025, Xpeng announced the delivery of the first locally assembled X9 MPV from its Indonesian production facility, signaling the beginning of a broader overseas production roadmap for the company.

The Indonesian operation is believed to use the CKD (Completely Knock Down) manufacturing model, a production approach widely adopted in international automotive assembly operations. Under this structure, vehicle components are imported in loose-kit form and assembled locally within the destination market. The model enables manufacturers to reduce logistics costs, improve localization, and align more efficiently with regional regulatory requirements and taxation structures.

Ownership Structure After Acquisition

Global Manufacturing Expansion Continues

Beyond Indonesia, Xpeng is also expanding its international manufacturing footprint through partnerships in Austria. The company previously announced cooperation with Magna Steyr for localized vehicle production in Europe. Earlier this month, a senior Xpeng executive revealed that discussions are underway with Volkswagen and other automotive manufacturers regarding the potential acquisition of a European factory. The discussions come as production capacity at Xpeng’s current Austrian contract manufacturing facility approaches its operational limits.

The company’s overseas expansion strategy reflects the growing importance of localized manufacturing among global electric vehicle makers. By establishing assembly and production operations closer to target markets, automakers can improve supply chain efficiency, reduce import dependency, and respond more effectively to regional consumer demand. Xpeng’s investment in Indonesian manufacturing infrastructure also positions the company to strengthen its presence across the broader Southeast Asian EV ecosystem.

Frequently Asked Questions

Why did Xpeng acquire a majority stake in PT Era Industri Otomotif?
Xpeng acquired the majority stake to accelerate localized electric vehicle manufacturing operations in Indonesia and strengthen its long-term expansion strategy in Southeast Asia. The acquisition gives the company direct control over PT Era Industri Otomotif, which will continue operating as a dedicated production and assembly facility for Xpeng vehicles. The move also supports the company’s objective of improving manufacturing efficiency, expanding local production capabilities, and strengthening supply chain flexibility in one of the region’s largest automotive markets.

What manufacturing model is Xpeng using in Indonesia?
Xpeng appears to be using the Completely Knock Down (CKD) manufacturing model for its Indonesian operations. Under this approach, vehicle components are shipped as separate kits and assembled locally within the destination country. The CKD model helps automakers reduce import costs, improve localization levels, and comply with regional manufacturing policies. It also enables faster scaling of production operations while supporting local employment and industrial development within the host country’s automotive sector.

How does this acquisition support Xpeng’s global expansion plans?
The acquisition strengthens Xpeng’s overseas manufacturing strategy by expanding its localized production network outside China. Indonesia serves as a strategic regional hub for Southeast Asia, while the company is also increasing manufacturing activity in Europe through partnerships and factory acquisition discussions. By building production capacity closer to target markets, Xpeng can improve operational efficiency, reduce logistics challenges, and respond more effectively to growing global demand for electric vehicles and localized automotive production solutions.