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

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.