JAKARTA, INDONESIA, July 9, 2024 – Vietnam’s electric vehicle (EV) manufacturer, VinFast, has officially entered the Indonesian market, unveiling a new dealership in Depok, a suburb of Jakarta, and announcing plans to invest US$1.2 billion to establish a local assembly plant with a capacity of 60,000 cars per year. In a strategic move, VinFast has partnered with Otoklix, a local automotive service and repair startup backed by AC Ventures, to become its authorized service provider across Indonesia.
This partnership aligns with Indonesia’s updated electric vehicle transition roadmap, which aims for the domestic production of 600,000 electric cars by 2025. The ambitious EV adoption plan emphasizes the need for a comprehensive aftersales service and repair sector for EVs, alongside a robust nationwide charging and battery-swapping infrastructure.
Martin Reyhan Suryohusodo, Co-founder and CEO of Otoklix, highlighted Indonesia’s proactive government support for EVs, noting that the incoming president is expected to continue this commitment. “The government’s investment focuses on essential infrastructure elements such as expanding the charging station network and enhancing financing options,” Martin explained.
He also discussed the critical issue of regulatory clarity concerning the commercial sale of electricity, a challenge for third-party charging station providers due to Indonesia’s regulations requiring all commercial electricity sales to go through the state electricity company, PLN.
Otoklix, since its inception in 2019, has primarily supported independent workshops servicing gas-powered vehicles. However, the company is now investing in training and infrastructure to lead the era of electric vehicles. Otoklix has launched an academy dedicated to training mechanics in EV servicing, addressing the urgent need for a skilled workforce proficient in EV-specific requirements, focusing on safety and technical proficiency.
Martin emphasized the importance of evolving to service EVs effectively. “Servicing EVs isn’t just about the mechanical aspects but crucially about the software and electrical components, especially the battery. Ensuring a tight seal during battery cell replacement is critical to prevent damage from moisture or dirt,” he noted.
The partnership with VinFast represents a significant milestone for Otoklix, enabling the company to extend its reach and impact. Martin added, “As the EV market expands over the next decade, we expect to see a rise in demand for affordable, high-quality automotive parts. We plan to partner with companies that manufacture these parts to supply independent workshops, offering EV owners more competitive options.”
Despite the growth of the EV market, Martin acknowledged the continued relevance of gas-powered vehicles, hybrids, and emerging hydrogen power vehicles. He stressed the need for continuous investment in infrastructure to support the EV transition, describing it as a classic chicken-and-egg situation.
Otoklix reported a doubling of its topline revenue year-over-year in the third quarter of 2023, alongside notable improvements in unit economics, with profitability in sight. The company empowers millions of workshops and operates its signature shops across major Indonesian cities, with the VinFast partnership currently limited to these proprietary outlets.
As Indonesia progresses towards its ambitious EV goals, the collaboration between Otoklix and VinFast is poised to play a crucial role in shaping the future of the nation’s automotive industry.