Link Copiedcheck_circle
Auto News

First Of Its Kind In Southeast Asia, Hyundai Motor Manufacturing Indonesia

Afiq Saha

Share via

Located 40 km east of the capital city of Jakarta in the Deltamas industrial complex, Hyundai’s first factory in Southeast Asia, the Hyundai Motor Manufacturing Indonesia.

Following the signing of a Memorandum of Understanding (MOU) with the Indonesian government, this plant is to be Hyundai’s local manufacturing centre for the Southeast Asian markets.

Initially, when Hyundai completed construction of the factory last year in December, it had a production capacity of only 150,000 units.

With this new progress, Hyundai is investing USD 1.55 billion (RM 6,551,540,000) in the plant and increasing the production capacity to 250,000 units.

Republic of Indonesia’s president, Joko Widodo, remarked, "Today, I inaugurated and launched Hyundai Motor Manufacturing Indonesia's plant and the first IONIQ 5 electric car produced in Indonesia. I hope that this IONIQ 5 from Hyundai will become an important milestone in the development of Indonesia's electric vehicle ecosystem, and to further accelerate the electric car ecosystem that is more advanced."

Primarily, Hyundai Motor Manufacturing Indonesia exemplifies the company’s commitment to sustainable development and vision of ‘Progress for Humanity.’ 

For example, said motive can be seen in the use of environmentally friendly technologies, such as solar panels that can meet part of the plant’s electrical needs. 

In addition, Hyundai also plans to use environmentally friendly water-based paints in the vehicle painting process. 

Hyundai Motor Group’s executive chair, Euisun Chung, commented, “Indonesia is a key hub for Hyundai Motor’s future mobility strategy. This plant will play a key role in the automotive industry and specifically in the field of electric vehicles. Moreover, Hyundai will keep contributing to the establishment of the electric vehicle ecosystem in Indonesia through the battery cell plant currently under construction. This will further help support Indonesia to play an important role in the global landscape. We hope Hyundai’s future technologies will be the foundation of greater collaboration with Indonesia.”

To begin with, the plant is slated to produce strategic and competitive models for the region such as the CRETA SUV and IONIQ 5 battery electric vehicle (BEV), respectively.

The IONIQ 5 is Hyundai’s first dedicated BEV model produced in Southeast Asia, and its introduction strengthens the brand’s position as an EV pioneer in the Indonesian market.

This builds on the positive EV sales momentum in Indonesia made earlier by IONIQ Electric and KONA Electric, which accounted for 87.3 percent of total EV sales in Indonesia in 2021. 


Moreover, the IONIQ 5 vehicles along with the Genesis G80 Electrified are also set to be used during the G20 Bali Summit. 

At the moment, Hyundai is to produce the Santa Fe SUV model in the first half of 2022 and a small strategic MPV model for the Southeast Asian market in the second half of 2022.

Separately, the company is working with LG Energy Solutions to build a battery cell factory in Karawang, targeted for completion in the first half of 2023 and starting production in 2024. 

Said battery cell produced from the factory is to support Indonesia’s EV transition with supply of sustainable EV batteries.

Significantly, the locally produced batteries are to be utilised for the EV models in the Indonesian plant, further enhancing EV models’ price competitiveness.

Furthermore, establishing a vehicle manufacturing plant in Indonesia reflects Hyundai’s commitment to bringing game-changing innovations to the country in terms of products and services. 

Notably, Hyundai has 100 dealerships located across 40 cities throughout Indonesia, spanning from Sumatra to Papua.

That said, Hyundai is committed to working towards growing and developing together with its local partners in Indonesia to consistently offer quality products.

Gallery

Tagged:

Hyundai Motor Comany
Hyundai Manufacturing Indonesia
Share This Article

Written By

Afiq Saha

Part of the CariCarz multi-faceted editorial team, Afiq is an English author packing four years of professional writing experience, be it creative or factual. (LinkedIn: www.linkedin.com/in/Afiq-Saha-AS27)

Share via

Related News

International
Indonesia Offers Tax Breaks On EV Imports To Attract Investment

Indonesia Offers Tax Breaks On EV Imports To Attract Investment

Indonesia will offer tax breaks to automakers who intend to construct electric vehicle plants on their imports of fully assembled electric vehicles until 2025.

14-12-2023
International
Hyundai Leads Indonesia’s EV Market With Locally Produced IONIQ 5

Hyundai Leads Indonesia’s EV Market With Locally Produced IONIQ 5

Hyundai has surpassed Toyota as the top seller of electric vehicles in Indonesia.

06-09-2023

Latest News

Auto News
KPDN Probes SG Driver Sighted Pumping RON95 in Johor

KPDN Probes SG Driver Sighted Pumping RON95 in Johor

KPDN is probing a viral incident where a Singapore-registered car was seen pumping subsidised RON95 fuel.

Auto News
Traffic Diversion On Bukit Gambir-Tangkak From Aug 5

Traffic Diversion On Bukit Gambir-Tangkak From Aug 5

Traffic along the NSE near Tangkak will be diverted in both directions from Aug 5 for bridge construction.

04-08-2025
Auto News
1,489 Summonses Issued in VEP Enforcement Operation – JPJ

1,489 Summonses Issued in VEP Enforcement Operation – JPJ

JPJ has issued a total of 1,489 summonses during an enforcement operation on VEP at the JB-Singapore land border.

04-08-2025
Auto News
No Green Light Yet For Cross-Border Ride-Hailing Between SG, JB.

No Green Light Yet For Cross-Border Ride-Hailing Between SG, JB.

Singapore holds off on cross-border ride-hailing plans, opting instead to improve its existing taxi scheme with Malaysia.

04-08-2025
Auto News
RM110 Million Collected from Special Plate Sales Since 2023 – MoT

RM110 Million Collected from Special Plate Sales Since 2023 – MoT

A total of RM110 million has been collected from sales of special number plates since 2023, the Transport Ministry says.

04-08-2025
Auto News
Nanta: 80% of Accidents Driver-Linked, Road Budget 70% Short

Nanta: 80% of Accidents Driver-Linked, Road Budget 70% Short

With 80% of accidents linked to drivers, the Works Ministry still grapples with limited funds to fix and rebuild roads.

Auto News
LRT3 Shah Alam Line Opening Could Be Delayed to Oct 31 – Report

LRT3 Shah Alam Line Opening Could Be Delayed to Oct 31 – Report

The LRT3 Shah Alam line opening could be delayed until Oct 31 instead of the planned launch date of Sept 30.

04-08-2025
Auto News
ETS to JB Sentral ‘On Track’, But Not Quite There Yet

ETS to JB Sentral ‘On Track’, But Not Quite There Yet

KTMB says electrification works between Kluang to JB Sentral are ongoing and the extension will proceed once conditions are met.