Chinese automaker XPeng has acquired a controlling stake in a manufacturing entity under Indonesia’s Erajaya Group, as it deepens its localized production strategy in Southeast Asia’s largest auto market.
PT Sinar Eka Selaras Tbk (Erajaya Active Lifestyle, ERAL) has transferred a 90.1% stake in PT Era Industri Otomotif (EIDO) to the carmaker — through XPeng International Holding (Hong Kong) Limited.
XPeng is now the controlling shareholder of EIDO, while ERAL retains a 9.9% minority position.
The transaction involved 154,072 shares and officially took effect on May 13, according to a filing with the Indonesia Stock Exchange on Monday.
EIDO will continue to operate as a dedicated manufacturing entity focused on XPeng’s production and assembly operations in the country.
The ownership change has no material impact on the company’s financials or daily operations, ERAL Corporate Secretary Badar Teguh Mancik Alam said in a statement.
Additionally, XPeng‘s distribution, sales, and aftersales services in Indonesia will continue to be handled by PT Era Inovasi Otomotif (EIVO) and PT Era Dealer Otomotif (EDOO) — both of which remain under ERAL’s business portfolio.
First Overseas Production Base
The Guangzhou-based automaker officially entered the Indonesian market in March 2025, announcing ERAL as its local dealership partner at the time.
The company began pre-sales for the X9 MPV and the G6 SUV in the Southeast Asian nation that same month — and formally launched the X9 in the Indonesian market in late June, pricing it from IDR 990 million (approximately $56,000).
A few months later, XPeng delivered its first locally produced X9 at the 2025 Gaikindo Indonesia International Auto Show (GIIAS).
The first locally produced unit rolled off the production line on July 1, 2025.
Founder and CEO He Xiaopeng announced via video at GIIAS that XPeng had chosen Indonesia as its first overseas production base, marking the start of the company’s global manufacturing deployment.
“As Southeast Asia’s largest automotive market, Indonesia has special strategic significance for XPeng,” He Xiaopeng said last July.
He noted that the establishment of local production in the country not only represented a key milestone in the company’s global expansion but also enhanced its responsiveness to local market needs.
To demonstrate the X9’s capabilities, three Chinese XPeng owners departed from Guangzhou on July 5, driving the model through Laos, Thailand, Malaysia, and Singapore before reaching Jakarta.
The nearly 2,485-mile journey that marked the first time a Chinese fully electric MPV traversed Southeast Asia and crossed the Equator.
The local assembly in Indonesia appears to be carried out through the CKD (Completely Knocked Down) model — a method where components are imported as loose kits and assembled locally.
Growing Global Manufacturing Footprint
Indonesia is one of three overseas production bases XPeng has established over the past year.
In December 2025, the company signed a deal with Malaysian manufacturer EP Manufacturing Berhad to assemble its G6 and X9 models at a facility in Malacca state, marking its second international production partnership at the time.
In January, XPeng announced it would establish dedicated supply chain teams in Europe and Southeast Asia to reduce logistics and transportation costs by fostering local procurement near its overseas production hubs.
European Production
In addition to Indonesia and Malaysia, XPeng has partnered with Austria-based contract manufacturer Magna Steyr to assemble vehicles at its facility in Graz.
The plant currently produces the G6 and G9 SUVs from semi-knockdown kits shipped from China, with the P7+ sedan having completed trial production in January and entered series production in April.
However, capacity at the Austrian plant is already under strain.
Last week, XPeng‘s Managing Director for the UK and Eastern Europe Elvis Cheng said the company’s production capacity at Magna Steyr is insufficient to meet growing European demand, speaking at the Financial Times Future of the Car summit in London.
Cheng confirmed that XPeng is in exploratory talks with its shareholder Volkswagen Group over potential European manufacturing.
Volkswagen holds a 4.99% stake in the Chinese automaker following its initial investment in 2023.
“We have a partnership with Volkswagen, they are our shareholder,” the executive noted, explaining that the current collaboration is mainly in China, focused on providing software and electric platform technology to Volkswagen.
However, he acknowledged that the relationship opens doors for manufacturing discussions on the continent.
“Not only with Volkswagen, but we are also looking for another possibility to find a new location. Maybe we are going to build one in Europe. That’s also a possibility for us,” Cheng added.
The executive’s comments came as XPeng is preparing to launch four new models in Europe this year, including the entry-level Mona series — set to debut on the continent in July at a brand event in Munich — and the flagship GX SUV, expected in October.
Delivery Guidance
The Guangzhou-based company is targeting between 550,000 and 600,000 vehicle deliveries globally in 2026 — a 28% to 40% increase over the 429,445 units delivered in 2025.
Overseas deliveries reached 45,008 units last year, accounting for roughly 10% of total volume.
The company aims to double that figure this year.
XPeng is guiding for 1 million annual overseas sales by 2030, with international markets expected to generate over 70% of profits.
The automaker is now present in over 60 markets worldwide, with the latest entry having been Tunisia last week.
