VinFast deepens Indonesia push with Gowa venture

VinFast is joining forces with Gowa Motor Group to create a venture aimed at accelerating the electric vehicle maker’s retail expansion across Indonesia, with plans for at least 30 new showrooms and service centres. The agreement strengthens VinFast’s push to build a nationwide sales and aftersales ecosystem alongside its growing manufacturing presence.

The memorandum of understanding envisages the two companies establishing a joint venture that will develop and operate dealerships in strategic markets across the archipelago. Gowa Motor Group will contribute its experience in vehicle distribution and retail operations, while VinFast will provide its expanding electric vehicle portfolio, technology and supporting ownership services.

The partnership comes as VinFast builds a larger commercial footprint in Indonesia, one of Southeast Asia’s most closely watched electric vehicle markets. The company already had more than 40 dealer showrooms operating across the country by the end of July and has been expanding authorised service facilities through agreements with local automotive businesses.

The additional outlets planned with Gowa Motor Group could significantly widen VinFast’s physical reach. Dealership availability remains important in Indonesia because consumers are spread across a large archipelago, making proximity to sales, servicing and spare parts an important factor in purchasing decisions. VinFast has therefore been building its distribution and aftersales infrastructure alongside charging access and local production.

The company opened its electric vehicle manufacturing plant in Subang, West Java, in December 2025. The facility began with annual capacity of about 50,000 vehicles, while VinFast has outlined plans to increase Indonesian production capacity eventually to as much as 350,000 units a year. Investment in the country could rise to $1 billion, depending on market demand and the pace of expansion.

Local manufacturing is becoming central to VinFast’s strategy. The company has targeted localisation of more than 40% during 2026, rising to 60% by 2029 and 80% from 2030. Greater domestic sourcing could help the automaker satisfy industrial requirements while reducing logistics costs and creating a supplier network around the Subang complex.

VinFast has also broadened the vehicles produced in Indonesia. The VF MPV 7 electric people carrier entered production at Subang this year, extending a portfolio that includes compact and sport utility vehicles aimed at different price segments. The company is attempting to combine locally manufactured vehicles with an expanding dealership system rather than relying predominantly on imports and a limited retail presence.

Indonesia has become increasingly important to electric vehicle manufacturers because of its large consumer market and extensive nickel reserves, a key raw material for batteries. Jakarta has sought to develop a domestic EV industry stretching from mineral processing and battery production to vehicle manufacturing. President Prabowo Subianto has said the country aims to begin mass production of domestically developed electric cars no later than 2028.

Competition is intensifying as Chinese and other Asian manufacturers expand their positions. VinFast’s strategy relies partly on building an integrated ownership ecosystem, including dealerships, servicing and charging incentives, to differentiate its vehicles as consumers evaluate unfamiliar electric brands.

The Indonesian expansion also reflects a wider shift in VinFast’s international strategy towards Asian growth markets. The company is building sales and manufacturing operations across Indonesia, India and other parts of Southeast Asia while pursuing a more measured approach in Western markets. VinFast is targeting at least 300,000 global electric vehicle deliveries in 2026 after selling almost 197,000 vehicles during 2025.

That expansion carries substantial financial demands. VinFast recorded a net loss of 35.2 trillion dong, about $1.34 billion, in the fourth quarter of 2025 as investment, charging incentives and overseas expansion continued to weigh on its finances. Full-year revenue nevertheless doubled to about $3.6 billion, supported mainly by strong vehicle demand in Vietnam.

Gowa Motor Group gives VinFast a partner with established knowledge of Indonesia’s automotive retail market as it seeks to convert manufacturing investment into broader vehicle sales. The proposed venture is expected to concentrate on locations where stronger sales and servicing coverage can improve customer access, while complementing VinFast’s existing network of independent dealerships and authorised service providers.