A year after officially returning to the Indonesian market, Chery signed a letter of intent (LoI) with the Indonesian government, further committing to invest in localisation efforts in the archipelago.

The signing ceremony was witnessed by key representatives from Indonesia’s Ministry of Industry as well as executives from Chery Automobile including Chairman and CEO, Mr. Yin Tongyue.

"The signing of this LoI is a form of confirmation of Chery's commitment to contribute to the Indonesian automotive industry, especially to support the acceleration of the formation of the Battery Electric Vehicle (BEV) ecosystem,” said Qu Jizong, Executive Vice President of PT Chery Sales Indonesia.

He continued, “In one year of presence in Indonesia, we are increasingly confident that Chery can continue to grow together with the government, partners, and Indonesian consumers. Therefore, we will carry out our commitment to invest through the production of electric vehicles in Indonesia and distribution to right-hand drive countries.”

Though Chery has not announced what EV model will be produced, AutonetMagz speculated that the likely candidate would be the Omoda E5 electric SUV. The Omoda E5 was previewed at the 2023 Gaikindo Indonesia International Auto Show (GIIAS) and was previewed to the Malaysian media just yesterday.

Also read: Launching in Q1 2024, Chery Omoda E5 EV previewed in Malaysia; 430 km range, 204 PS/340 Nm

The Indo automotive outlet reported that bookings for the Omoda E5 have been open since August. The EV is expected to be launched in Indonesia in early 2024 with customers receiving CKD units.

In Indonesia, Chery made an agreement with PT Handal Indonesia Motor to have its models locally assembled (CKD) at its plant in Bekasi. Currently, the plant assembles the Chery Omoda 5, Chery Tiggo 7 Pro, and Chery Tiggo 8 Pro for the Indonesian domestic market.

Also read: Chery Omoda 5 GT now in Indonesia; more powerful with 200 PS 1.6 TGDi, multi-link suspension; prices equal up to RM 148k

Chery has stated that it is looking to set up its own plant in Indonesia and plans to make the archipelago its hub for right-hand drive (RHD) markets in Southeast Asia.

The Chinese carmaker also has CKD operations in Malaysia with the Tiggo 8 Pro and Omoda 5 being assembled at the Inokom plant in Kulim. Yet, the all-electric Omoda E5 is expected to be fully imported (CBU) from China when it gets launched here in the first quarter of 2024 (Q1 2024).

Also read: Supporting Malaysia's economy - Chery Malaysia to begin exports from Kulim plant in 2024