The rapid growth in global electric vehicle (EV) adoption is creating fresh investment landscapes, especially in Southeast Asia. The collaboration between India and Indonesia offers a unique window of opportunity for growth. By doing business with Indian firms, Indonesian companies can tap into India's EV momentum and implement it in Indonesia's evolving market.
India's EV sector is experiencing notable growth, making it one of the fastest-growing industries in 2025. According to recent reports, India's EV market is expected to grow 66% by 2029, reaching a staggering US$114 billion. This market is dominated by two-wheelers, which account for 90% of total EV sales. Several factors contribute to this growth, including FAME II, rising fuel costs, and tax deductions.
Indian EV businesses are expanding aggressively, creating opportunities for Indonesian firms to do business with Indian firms and grow together, fostering mutual success.
With Indonesia's rich nickel reserves, doing business with Indian EV manufacturers can be a strategic move to unlock new growth opportunities in the evolving market.
Indonesia has lots of nickel, but not enough local battery factories. Indian firms can team up with Indonesian partners to build battery plants and share their expertise.
Key EV components, such as motors and controllers, are still mostly imported. Indian manufacturers can help Indonesia by setting up local production and bringing cost-effective solutions.
Indonesia needs affordable electric scooters, bikes, and public transport options. Indian EV makers already build these for similar markets and can easily adapt them for Indonesian roads.
Indian companies can work with Indonesian partners to develop better batteries, chargers, and innovative mobility solutions. This helps speed up local innovation.
Read more: Exploring opportunities from the largest nickel reserves in Indonesia
Indonesia is on the path to becoming an EV powerhouse, but it needs more substantial support to reach its full potential. This is where doing business with Indian manufacturers is essential to fill the gaps:
Read more: PT PMA capital investment: Requirements and guidelines in Indonesia
Most EV components in Indonesia are imported, which raises costs and delays production. By building local manufacturing with Indian partners, Indonesia can reduce this dependency and gain more control over its supply chain.
While Indonesia has rich raw materials such as nickel, downstream industries, including refining, battery assembly, and advanced technologies, remain underdeveloped. Indian firms with battery tech and supply chain knowledge can bridge this gap.
Indonesia is seeing fast growth in EV demand, with projections of over 600,000 EVs on the road by 2030. But local production isn't keeping up. More factories, suppliers, and tech providers are urgently needed.
Doing business with Indian EV firms will help Indonesia unlock the full potential of its EV market. This strategic move can drive a more substantial economic impact through increased job creation, exports, and the transfer of advanced technologies.
For Indian firms looking to expand, Indonesia offers a promising environment for the EV business. Here's why investing now is a smart move:
Indian businesses benefit from favorable trade terms with Indonesia under these frameworks:
These agreements create a safe and profitable space for Indian investors.
Indonesia has made significant improvements that have made it easier to start a business. As Indonesia ranks 73rd globally in ease of doing business, the government has created a positive environment for contract procurement, tax payments, and cross-border trade.
One of the licensing initiatives is One Single Submission (OSS). This procedure makes business registration fast and digital. What used to take weeks now takes hours. Key benefits include:
Read more: Best investment opportunities in Indonesia: 4 tips for Saudi businesses
For Indian EV firms, leveraging a trust agent like Ascentium Indonesia can help streamline the business setup and licensing process, ensuring a hassle-free start from the very first step.
Read more: How a company registration consultant can save time and money
Indonesia's EV sector is growing fast, and now it's the perfect time for Indian firms to take the lead. But to succeed, you need proper local support.
Ascentium Indonesia provides a complete solution to launch and grow your EV business with confidence: