Chinese electric vehicle manufacturer Xpeng has acquired a controlling stake in an automotive manufacturing entity under Indonesia’s Erajaya Group, as the company accelerates efforts to expand localized production in Southeast Asia’s largest automotive market.
According to a filing submitted to the Indonesia Stock Exchange on Monday, PT Sinar Eka Selaras Tbk, also known as Erajaya Active Lifestyle (ERAL), transferred a 90.1% stake in PT Era Industri Otomotif (EIDO) to Xpeng.
The transaction, which became effective on May 13, involved 154,072 shares.
Following the deal, Xpeng International Holding (Hong Kong) Limited now holds a 90.1% controlling stake in EIDO, while ERAL retains the remaining 9.9%.
Badar Teguh Mancik Alam, corporate secretary of ERAL, said the ownership change would not materially affect the company’s operations or financial condition.
He added that Xpeng’s distribution, sales and after-sales services in Indonesia would continue to be managed by PT Era Inovasi Otomotif (EIVO) and PT Era Dealer Otomotif (EDOO), both of which remain part of ERAL’s business portfolio.
Meanwhile, EIDO will continue operating as a dedicated production and assembly entity for Xpeng vehicles in Indonesia.
The move forms part of Xpeng’s broader overseas expansion strategy as Chinese automakers increasingly localize production in foreign markets to reduce costs and improve market access.
Xpeng officially entered the Indonesian market in March 2025, naming ERAL as its local dealership partner.
In July 2025, the company announced the delivery of the first locally assembled X9 multi-purpose vehicle produced in Indonesia.
At the time, Xpeng said Indonesia would serve as the starting point for its global localized manufacturing strategy, though it did not disclose detailed production plans.
Industry reports indicate the Indonesian operation is based on the CKD (Completely Knocked Down) manufacturing model, under which vehicle components are imported as kits and assembled locally.
Beyond Indonesia, Xpeng has also partnered with Austrian contract manufacturer Magna Steyr to support localized production in Europe.
Earlier this month, an executive at Xpeng said the company was in discussions with Volkswagen and other automakers regarding the possible acquisition of a European factory, citing limited remaining capacity at its Austrian production operations.
