Indonesia Joins the Ranks of Asia's Largest Automotive Manufacturing Nations

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Erlina Fury Santika 30/05/2023 16:01 WIB

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Indonesia is among the countries with the largest automotive manufacturing industries. Is this also the gateway to opening up electric vehicle manufacturing?

Largest Car Manufacturing Countries in Asia (2021)

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Indonesia Joins the Ranks of Asia's Largest Automotive Manufacturing Nations

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Largest Car Manufacturing Countries in Asia (2021)

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Indonesia ranks among the countries with the largest automotive manufacturing industries in Asia. This is evident from data from the Organisation Internationale des Constructeurs d'Automobiles (OICA) trade association, elaborated by the Institute for Essential Services Reform (IESR).

The IESR report shows that the Asian country with the largest automotive manufacturing sector is China, which produced over 26 million units in 2021.

Second is Japan with 7.8 million units, followed by India in third place with 4.3 million units.

Indonesia ranks last on this list, producing 1.1 million units in 2021. IESR even estimates that Indonesia produced close to 1.5 million vehicles in 2022, based on data from the Indonesian Automotive Manufacturers Association (Gaikindo).

This also places Indonesia as the second-largest automotive manufacturer in Southeast Asia, behind Thailand, which produced 1.6 million units in 2021.

"This fact shows that Indonesia also has the potential to become a center for electric vehicle manufacturing, especially if an integrated supply chain is in place," said the research team in the Indonesia Electric Vehicle Outlook (IEVO) 2023 report.

Indonesia is expected to not only build automotive factories but also build a high-quality and competitive overall manufacturing sector. This was stated by Sri Mulyani, Minister of Finance, who also mentioned that a competitive manufacturing sector is part of economic transformation.

"And that requires organization, from human resources and capital," said Sri Mulyani when met by reporters at her office in Jakarta on Monday, October 31, 2022.

Here is a breakdown of the number of vehicle units produced by Asian countries in 2021:

* China: 26,082,220 units
* Japan: 7,846,955 units
* India: 4,399,112 units
* South Korea: 3,462,404 units
* Thailand: 1,685,705 units
* Indonesia: 1,121,967 units

(See also: ASEAN Car Production Reaches 4.38 Million Units in 2022: Here are the Main Producers)

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."