VinFast, the Vietnamese automaker, responded to Indonesia’s decision to stop electric vehicle incentives after December 31, 2025. The company emphasized that it has prepared long-term business plans, so the government’s decision will not disrupt its strategy in Indonesia.

CEO of VinFast Indonesia, Kariyanto Hardjosoemarto, stated that from the beginning, the company expected the incentives to be temporary. "All CBU units we imported from last year through this year have already received these incentives," Kariyanto told reporters in Hanoi on September 24.

Business Strategy Based on Temporary Incentives

The government incentives were introduced in January 2024 with a set expiration date of December 31, 2025. Kariyanto said, "We have prepared business scenarios assuming these incentives end at the end of 2025 and that we will move to CKD assembly through our factory in Subang."

VinFast adjusted the prices of imported vehicles according to the government’s incentive scheme from the start.

Focus on Subang Factory and Local Assembly

The purpose of the government’s incentives was to encourage local electric vehicle production. VinFast sees building the factory in Subang as the main business strategy after the incentives end.

"For us, this has been part of the plan from the beginning. After incentives end, our business will focus on products assembled through our CKD factory in Subang," Kariyanto explained.

Some Models Will Continue as CBU Imports

Kariyanto added that some VinFast models might still be imported as Completely Built-Up (CBU) units. "Maybe some models will remain CBU, but this is already included in our business plan," he said.

Commitment to Market Competitiveness and Government Policy

VinFast is confident it can compete in Indonesia’s electric vehicle market without incentives. The Subang factory will be key to offering more competitive prices and strengthening its commitment to Indonesia’s automotive industry.

This approach aligns with government policies promoting technology transfer and increased local content in electric vehicle production. For consumers, CKD assembly is expected to provide more affordable products and better after-sales service.

PHOTO: VINFAST

This article was created with AI assistance.