Hyundai Motor inaugurates first auto factory in Southeast Asia

South Korean automaker Hyundai Motor Company inaugurated its first factory in Southeast Asia, located in Deltamas industrial complex near Cikarang, Indonesia, 40 kilometers east of the capital city of Jakarta.

The inauguration follows Hyundai’s signing of a memorandum of understanding (MOU) with the Indonesian government to build and operate a local manufacturing plant that will become Hyundai’s manufacturing center for Southeast Asian markets.  

The ceremony was attended by Indonesian President Joko Widodo, Coordinating Minister of Maritime and Investment Luhut Binsar Panjaitan, Coordinating Minister of Economic Affairs Airlangga Hartarto, Minister of Investment Bahlil Lahadalia, Minister of Transportation Budi Karya, Minister of State-Owned Enterprises Erick Thohir, State Secretary Pratikno, Korean Ambassador to Indonesia Park Tae-sung, and Executive Chair of Hyundai Motor Group Euisun Chung.

Last December, Hyundai completed construction of the factory with an initial production capacity of 150,000 units. Hyundai plans to invest around USD1.55 billion in the plant and the production capacity is due to be increased to 250,000 units.

Hyundai Motor Manufacturing Indonesia exemplifies the company’s commitment to sustainable development and vision of ‘Progress for Humanity.’ This 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 plans to use environmentally friendly water-based paints in the vehicle painting process. 

“Today, I inaugurate and launch Hyundai Motor Manufacturing Indonesia’s plant and the first IONIQ 5 electric car produced in Indonesia,” said Joko Widodo, president of 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 advance.”

“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,” said Chung, Executive Chair of Hyundai Motor Group. “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.”

Building on Hyundai’s Commitment to EV

Indonesia is spearheading expansion of the EV ecosystem with its measures including converting 130,000 units of government vehicles to EVs by 2030. Hyundai Motor is committed to helping to support this vision to build a robust EV ecosystem. 

Hyundai’s new plant will not only produce strategic model for the region such as CRETA SUV but also competitive EV models such as IONIQ 5 battery electric vehicle (BEV).

The IONIQ 5 is Hyundai’s first dedicated BEV model produced in Southeast Asia. The introduction of IONIQ 5 will not only reinforce Hyundai’s position as an EV pioneer in the Indonesian market.

Hyundai will build on positive EV sales momentum in Indonesia made earlier by IONIQ Electric and KONA Electric, which accounted for 87.3% of total EV sales in Indonesia in 2021. IONIQ 5 vehicles will be provided for the G20 Bali Summit along with the Genesis G80 Electrified. 

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

The battery cell produced from the factory will support Indonesia’s EV transition with supply of sustainable EV batteries. The locally produced batteries will be sourced to produce EV models in the Indonesian plant, further enhancing EV models’ price competitiveness.

Going forward, Hyundai will produce 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 at the new Indonesian manufacturing plant.