Xpeng has acquired a 90.1% stake in PT Era Industri Otomotif (EIDO), the Indonesian assembly entity linked to Erajaya Group, giving the Chinese EV maker control of its local manufacturing base in Southeast Asia’s largest auto market. The deal, which took effect on May 13, is part of Xpeng’s broader overseas localization strategy and follows the company’s first locally produced X9 delivery in Indonesia in 2025.
Chinese electric vehicle maker Xpeng has moved to tighten its grip on its Indonesian manufacturing operation by acquiring a 90.1% stake in PT Era Industri Otomotif (EIDO), a production entity previously under the Erajaya Group umbrella.
The ownership change was disclosed in a filing with the Indonesia Stock Exchange on Monday. The transaction became effective on May 13 and covered 154,072 shares.
Majority control shifts to Xpeng
After the transaction, Xpeng is now the controlling shareholder of EIDO, while PT Sinar Eka Selaras Tbk, also known as Erajaya Active Lifestyle, keeps the remaining 9.9% stake.
The Xpeng entity involved in the deal was Xpeng International Holding (Hong Kong) Limited. Erajaya said the transaction does not materially affect its finances or day-to-day operations.
According to the company, Xpeng’s sales, distribution and after-sales activities in Indonesia will remain under PT Era Inovasi Otomotif (EIVO) and PT Era Dealer Otomotif (EDOO), which are still part of Erajaya’s business structure.
Why the EIDO deal matters
EIDO is expected to remain Xpeng’s dedicated local manufacturing platform in Indonesia, supporting the company’s assembly and production plans in the country. The move suggests Xpeng wants more direct control over its manufacturing footprint as it scales overseas.
Indonesia is the largest auto market in Southeast Asia, making it an important location for any carmaker seeking regional growth. For EV companies, local assembly can also help reduce logistics costs, improve supply-chain flexibility and potentially navigate trade or tariff issues more effectively.
Part of a wider localization push
Xpeng entered the Indonesian market in March 2025, when it named Erajaya as its local dealership partner. By July 2025, the company announced delivery of the first locally assembled X9 MPV from an Indonesian plant.
At the time, Xpeng said Indonesia would be the starting point for its global localized production strategy. The company did not go into detail then, but the assembly appears to follow a CKD, or completely knocked down, model, in which vehicle components are imported and assembled locally.
This approach is common among automakers expanding into new markets because it can lower entry barriers while building a local industrial presence.
Beyond Indonesia
Indonesia is not the only market where Xpeng is pursuing local production. The company has also partnered with Austria-based contract manufacturer Magna Steyr to begin localized production in Austria.
Earlier this month, an Xpeng executive said the company is in discussions with Volkswagen and other automakers about acquiring a factory in Europe, as capacity at its current Austrian contract manufacturing line is close to full.
The Indonesian stake acquisition shows that Xpeng is not just exporting vehicles abroad; it is increasingly building an international production network that could support long-term growth outside China.
Why This Matters
This deal matters because it marks a deeper commitment by Xpeng to manufacturing inside one of Asia’s most important EV and auto markets. Instead of relying only on exports, the company is taking direct control of a local assembly asset, which can improve its ability to scale production, adapt to demand and manage costs.
It also reflects a broader shift among Chinese EV makers: overseas expansion is no longer just about selling cars, but about building localized supply chains and production capacity. For readers, that signals stronger competition in regional auto markets and a more aggressive push by Chinese EV brands into global manufacturing.
Key Specs
- Acquired stake: 90.1%
- Minority stake retained by Erajaya: 9.9%
- Target company: PT Era Industri Otomotif (EIDO)
- Transacting Xpeng entity: Xpeng International Holding (Hong Kong) Limited
- Shares involved: 154,072
- Effective date: May 13, 2026
- Disclosure date: May 18, 2026
- Indonesia entry date: March 2025
- First locally produced X9 delivery: July 2025
- Exchange rate noted in source: $1 = 6.8099 yuan
Source: CNEVposts
