- Xpeng acquired a 90.1% stake in Indonesian auto assembly entity EIDO.
- The acquisition will accelerate Xpeng's localized production strategy in Southeast Asia's largest auto market.
Chinese EV maker Xpeng (NYSE: XPEV) has secured a majority stake in a manufacturing entity under Indonesia's Erajaya Group, a move aimed at accelerating its localized production pace 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 Xpeng, according to a filing with the Indonesia Stock Exchange on Monday.
The transaction officially took effect on May 13 and involved a total of 154,072 shares.
Following the deal, Xpeng becomes the controlling shareholder of EIDO with a 90.1% stake, while ERAL retains only a 9.9% minority interest.
Xpeng International Holding (Hong Kong) Limited is the Xpeng entity involved in the transaction.
The ownership change has no material impact on the company's financials and daily operations, ERAL Corporate Secretary Badar Teguh Mancik Alam said in the statement.
He added that Xpeng's distribution, sales, and after-sales services in Indonesia will continue to be handled by PT Era Inovasi Otomotif (EIVO) and PT Era Dealer Otomotif (EDOO), both entities remain under ERAL's business portfolio.
Meanwhile, EIDO will continue to operate as a dedicated manufacturing entity focused on Xpeng's production and assembly operations in Indonesia.
The acquisition aligns with Xpeng's broader strategy to expand its overseas markets.
The company officially entered the Indonesian market in March 2025, announcing ERAL as its local dealership partner at the time.
A few months later, in July 2025, Xpeng announced the delivery of the first locally produced X9 MPV (multi-purpose vehicle) from an Indonesian plant.
Starting with Indonesia, Xpeng will officially launch its global localized production strategy, the company said in an announcement on July 24, 2025.
Xpeng did not provide further details at the time, but the local assembly in Indonesia appears to be carried out through the CKD (Completely Knock Down) model.
CKD is a specialized trade term referring to a production method where a manufacturing country imports components in the form of loose kits and assembles them locally.
In addition to Indonesia, Xpeng has 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 talks with Volkswagen and other automakers to acquire a European factory, as capacity at its existing Austrian contract production line is nearing exhaustion.
($1 = 6.8099 yuan)
