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Otoklix Partners with VinFast to Enhance EV Services in Indonesia During Energy Transition

ByYasmeeta Oon

Jul 9, 2024

Otoklix Partners with VinFast to Enhance EV Services in Indonesia During Energy Transition

VinFast, the pioneering Vietnamese electric vehicle (EV) manufacturer, has recently marked its entry into Indonesia by inaugurating a new dealership in the Jakarta suburb of Depok. This strategic move is complemented by the company’s announcement of a significant investment plan. VinFast intends to pour US$1.2 billion into establishing a local assembly plant with a production capacity of 60,000 vehicles annually. This development aligns with Indonesia’s updated government roadmap, which ambitiously targets the production of 600,000 electric cars by 2025.

In line with its market entry, VinFast has forged a crucial partnership with Otoklix, an Indonesian startup specializing in automotive service and repair, backed by AC Ventures. This collaboration appoints Otoklix as the authorized service provider for VinFast vehicles throughout Indonesia, significantly bolstering the nation’s EV service infrastructure.

Martin Reyhan Suryohusodo, co-founder and CEO of Otoklix, emphasized the government’s supportive stance on EVs, a commitment he believes will continue under the incoming president. He remarked, “Indonesia is one of the few countries where the government is actively supporting EVs. This commitment is expected to continue under the incoming president.” Martin underscored the strategic importance of expanding the charging station network and enhancing financing options to facilitate the transition to electric vehicles.

Otoklix is not only addressing current market needs but also positioning itself for future demands through significant investments in specialized training and infrastructure. The company has initiated an academy dedicated to electric vehicle service training, ensuring that its workforce is well-equipped to handle the unique requirements of EVs, which differ markedly from those of traditional gas-powered vehicles.

In discussing the academy, Martin explained, “In our academy, we teach that servicing EVs isn’t just about the mechanical aspects—like brakes or tires, which are similar to those on gas-powered cars—but crucially about the software and electrical components, especially the battery.” He emphasized the necessity for precise safety protocols and specialized tools to safely manage the delicate components of electric vehicles.

Touching on the potential impact of Indonesia’s nickel reserves on the EV supply chain, Martin noted, “Currently, we’re not focusing on that, despite the country having the largest nickel reserves globally. The shift in the EV industry toward lithium batteries, which are more economically viable, influences this decision.” He pointed out that while nickel is predominantly processed into stainless steel, transitioning to battery production would necessitate significant changes in the existing industrial infrastructure.

Looking ahead, Martin anticipates a surge in demand for automotive parts that are equivalent to original parts but more affordable. This demand will encompass not only mechanical parts but also components of batteries, such as individual cells. “Over the next ten years, as the EV market expands, we expect to see a rise in demand for car parts that are as good as original parts but more affordable,” he predicted.

VinFast’s substantial investment in a local assembly plant and its strategic partnership with Otoklix highlight the company’s commitment to adapting to Indonesia’s evolving automotive landscape. This collaboration supports Indonesia’s ambitious plans for an electric vehicle future and lays the groundwork for a sustainable transportation ecosystem.

  • VinFast opens a new dealership in Depok, Jakarta.
  • Plans to invest US$1.2 billion in a local assembly plant.
  • Partnership with Otoklix to enhance EV service infrastructure.
  • Otoklix’s academy for specialized EV service training.
  • Indonesia’s nickel reserves and the shift towards lithium batteries.
  • Anticipated demand for affordable, high-quality automotive parts.
VinFast and Otoklix Collaboration Highlights
New Dealership LocationDepok, Jakarta
Investment AmountUS$1.2 billion
Annual Production Capacity60,000 vehicles
Service PartnershipOtoklix (backed by AC Ventures)
Government Roadmap Target600,000 electric cars by 2025
Specialized Training AcademyFocused on EV service training
Future Parts DemandAffordable, high-quality automotive parts
Nickel Reserves FocusShift towards lithium batteries due to economic viability

VinFast’s entry into the Indonesian market and its collaboration with Otoklix underscore the growing momentum behind the nation’s electric vehicle initiative. As Indonesia aims for significant growth in EV production, the groundwork laid by VinFast and Otoklix will be instrumental in achieving these ambitious targets. This partnership not only strengthens the EV service infrastructure but also prepares the industry for the future, ensuring that Indonesia remains at the forefront of the global electric vehicle revolution.

Featured Image courtesy of Canadian Auto Dealer

Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.

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