XPeng Takes Control of Indonesian EV Manufacturing Venture

Chinese electric vehicle maker XPeng has become the controlling shareholder of Era Industri Otomotif, an Indonesian vehicle manufacturing company under the Star Group, in a move that expands XPeng’s role in Southeast Asia’s emerging EV market.

The transaction took effect on May 13, 2026, after completing legal approvals and registration changes with Indonesia’s Ministry of Law. It applies only to the manufacturing entity and does not affect XPeng’s existing distribution, sales or after-sales operations in Indonesia, which will continue to be handled by other companies within the Star Group.

Before the deal, Star Group held 99.99% of Era Industri Otomotif. After the restructuring, XPeng owns 90.1%, while Star Group retains 9.9%. The transfer was completed in two steps, first involving a small share transfer from an individual shareholder to the parent company, followed by the transfer of most of the parent company’s stake to XPeng.

The partnership is focused on local vehicle production and assembly, but both sides say cooperation could extend into technology development and smart mobility services tailored to the Indonesian market.

For XPeng, the deal provides a manufacturing foothold in Indonesia at a time when Chinese EV makers are accelerating their overseas expansion. For Indonesia, it supports the government’s broader effort to develop a domestic electric vehicle supply chain rather than relying solely on imports.

Indonesia’s EV industry remains at an early stage, but the country is trying to position itself as a regional hub, helped by its large consumer market and its role in the global battery materials supply chain. Local manufacturing by foreign automakers could help build assembly capacity, create jobs and transfer technical know-how.

The deal also reflects a wider trend of Chinese EV companies moving beyond sales and distribution in Southeast Asia toward deeper local operations. If production scales successfully, XPeng could strengthen its position in Indonesia while giving the local EV ecosystem a more established manufacturing base.