On April 20, Toyota Motor Manufacturing Indonesia (TMMIN) and CATL (宁德时代) officially announced a strategic partnership in Jakarta to promote the localized production of Hybrid Electric Vehicle (HEV) batteries in Indonesia. The project involves a total investment of approximately 1.3 trillion IDR (approx. 76 million USD; Note: original reports of 13 trillion IDR were corrected by the Jakarta Post to 1.3 trillion IDR, primarily for production equipment).
Battery production will leverage CATL’s existing facility in Karawang, West Java, and is expected to officially commence in the second half of 2026. The collaboration covers the entire core value chain—from cell and module manufacturing to battery pack assembly—marking Toyota’s transition from simple assembly to deep-level battery cell manufacturing in Indonesia.
This partnership is designed not only to enhance Toyota’s cost competitiveness in the Indonesian domestic market but also carries significant strategic export weight. Nandi Julyanto, President Director of TMMIN, stated that through this cooperation, Toyota Indonesia will become Toyota's first subsidiary in the ASEAN region with battery export capabilities, supplying both local models like the new Veloz Hybrid and global markets. Currently, the plant’s battery assembly capacity has reached 9,000 units per month. With the deep integration of CATL’s (宁德时代) technology, the Domestic Component Level (TKDN) of the supply chain is expected to exceed 80%. This move aligns perfectly with the Indonesian government's "2030 Downstream Industrialization Strategy," which aims to utilize the country’s abundant nickel resources to transform Indonesia from a raw material exporter into a global battery manufacturing hub.
According to the latest data from the Association of Indonesia Automotive Industries (GAIKINDO), the Indonesian new energy vehicle market saw explosive growth in the first quarter of 2026, with retail sales exceeding 210,000 units. Wholesale sales of Battery Electric Vehicles (BEVs) reached 33,150 units in Q1, nearly doubling year-on-year, while Hybrid Electric Vehicles (HEVs) maintained steady growth of 21.3%. Although Toyota remains the market leader in Indonesia with a 30.4% share, Chinese brands led by BYD (比亚迪), Chery (奇瑞), and Jaecoo are growing rapidly, with BYD (比亚迪) cracking the top six in sales during the first quarter. By aligning with CATL (宁德时代), Toyota intends to leverage mature Chinese battery technology to reinforce its defensive moat in Southeast Asia against intensifying competition.