Hyundai to open $1.55B car factory in Indonesia

Hyundai to open $1.55B car factory in Indonesia

MANILA: Hyundai, the fifth largest automaker in the world, is expanding their territory yet again. This time, the company is eyeing to increase its vehicle production for ASEAN markets. Hyundai Motor Group (HMG) announced that a factory will soon rise in Indonesia, making it their first car plant in Southeast Asia.

Indonesia & Hyundai MOU

The news came after Indonesian officials signed a Memorandum of Understanding with Hyundai. HMG Executive Vice Chairman Euisun Chung and Indonesian President Jojo Widodo were among those who attended the ceremony.

“The establishment of Hyundai Motor’s manufacturing plant in Indonesia has been made possible thanks to the continuous cooperation and support from the Indonesian government,” said Chung.

The manufacturing plant will be built on a 77.6 hectare plot of land in Kota Deltamas – an industrial city located in South Jakarta. Hyundai has agreed to invest USD 1.55 billion on the factory to cover for its construction, as well as the development costs of upcoming models.

Hyundai is planning to produce new models at the Indonesian factory, including a compact MPV, a compact SUV, and several sedans. The new vehicles will be marketed to Southeast Asian countries.

Hyundai logo

In addition to these models, Hyundai is aiming to produce ASEAN-spec electronic vehicles (EVs) at the same plant. Hyundai and its sister company, Kia Motors, are striving to become the third-largest manufacturer of EVs in the world by 2025.

“Indonesia has nickel ore, used in the production of lithium-ion batteries – an important component in electric vehicles,” Airlangga Hartarto, Indonesia’s Minister of Industry, explained.

The decision to expand to Indonesia first made headlines last June. The South Korean automaker had been struggling with prolonged sales downturn in China, forcing them to shut down two of its factories this year.

While Hyundai struggled, rivals such as Toyota, Honda, Mitsubishi, and Ford thrived in Southeast Asia as they produced cars from Thailand. Once Hyundai opens their factory in Indonesia, they will be able to penetrate the market and go head-to-head with its competitors.

The automaker will also benefit from the ASEAN Free Trade Area, allowing them to sell Hyundai vehicles for better prices in the ASEAN region.

Hyundai Indonesia plant

“Hyundai will continue to listen actively and respond to the Indonesian government's expectations and policies regarding eco-friendly vehicles, while continuously contributing to the ASEAN community,” Chung added.

Hyundai’s new production plant is set to open in 2021. When it launches, it will be capable of producing 150,000 units per year. The factory is expected to reach a maximum capacity of 250,000 units per year once it goes in full swing.

Also Read: Hyundai revealed the electrified version of Lafesta sedan

Purva Jain

Purva Jain

Purva is a crazy admirer of cars and she has got a lot of expertise in their detailing. Though, she has mastered in Economics but cars have always been her field of interest. She is an introvert in talking but when it comes to cars and the latest news regarding them she talks like hell. Exploring new cars as well as the vintage machines is listed in her hobbies while getting to know about the history behind the same are the things which she enjoys the most. She may seem silent from the outside but inside her is a volcano erupting to engulf the mean machines.

Read Full Bio

Sell your car at the best price

Verified and genuine buyers Verified and genuine buyers
Free listing Free listing
List your car

Hyundai Car Models

  • Hyundai Palisade
    Hyundai Palisade
  • Hyundai H-100
    Hyundai H-100
  • Hyundai Santa Fe hev
    Hyundai Santa Fe
  • Hyundai Staria
    Hyundai Staria
  • Hyundai Stargazer
    Hyundai Stargazer
  • Hyundai Tucson hev
    Hyundai Tucson
  • Hyundai Creta
    Hyundai Creta
  • Hyundai Stargazer X
    Hyundai Stargazer X
  • Hyundai Custin
    Hyundai Custin
  • Hyundai Ioniq 5 ev
    Hyundai Ioniq 5
Hyundai Cars Price

PIMS 2024

You might also be interested in

  • News
  • Featured Stories

Latest Hyundai Car Videos on Zigwheels

Zigwheels
  • 2024 Hyundai Stargazer X Spec Guide | Zigwheels.Ph
    2024 Hyundai Stargazer X Spec Guide | Zigwheels.Ph
    16 Apr, 2024 .
  • 2024 Hyundai Stargazer X First Drive | Zigwheels.Ph
    2024 Hyundai Stargazer X First Drive | Zigwheels.Ph
    21 Mar, 2024 .
  • 2024 Hyundai Stargazer X First Look | Zigwheels.Ph
    2024 Hyundai Stargazer X First Look | Zigwheels.Ph
    20 Nov, 2023 .
  • Worry-free travels with the 5-star safety MPV – The Hyundai Stargazer
    Worry-free travels with the 5-star safety MPV – The Hyundai Stargazer
    25 Oct, 2023 .
  • 2024 Hyundai Custin Premium First Look | Zigwheels.Ph
    2024 Hyundai Custin Premium First Look | Zigwheels.Ph
    25 Oct, 2023 .
  • 2023 Hyundai Creta GLS Review | Zigwheels.Ph
    2023 Hyundai Creta GLS Review | Zigwheels.Ph
    25 Oct, 2023 .
  • 2023 Hyundai Ioniq 5 Review | Zigwheels.Ph
    2023 Hyundai Ioniq 5 Review | Zigwheels.Ph
    28 Aug, 2023 .
  • Hyundai Cebu Drive with Creta and Stargazer | Zigwheels.Ph
    Hyundai Cebu Drive with Creta and Stargazer | Zigwheels.Ph
    31 Mar, 2023 .
  • 2023 Hyundai Tucson GLS Review | Zigwheels.Ph
    2023 Hyundai Tucson GLS Review | Zigwheels.Ph
    09 Mar, 2023 .
  • The Cars of the 10th Philippine Electric Vehicle Summit | Zigwheels.Ph
    The Cars of the 10th Philippine Electric Vehicle Summit | Zigwheels.Ph
    16 Nov, 2022 .
Latest Hyundai Car Videos

Hyundai Car Articles From Carmudi

  • journal
  • insurance
  • Hyundai Motor PH, ANC+ Group forge alliance
    Hyundai Motor PH, ANC+ Group forge alliance
    Ruben Manahan IV, Nov 04, 2024
  • Hyundai to make PIMS comeback
    Hyundai to make PIMS comeback
    Paulo Papa, Oct 24, 2024
  • Son rises as new Hyundai Motor PH helm
    Son rises as new Hyundai Motor PH helm
    Ruben Manahan IV, Oct 16, 2024
  • Hyundai, Toyota collab for motorsport event in Korea
    Hyundai, Toyota collab for motorsport event in Korea
    Paulo Papa, Oct 11, 2024
  • Hyundai Motor PH launches hybrid Santa Fe, Tucson
    Hyundai Motor PH launches hybrid Santa Fe, Tucson
    Paulo Papa, Jul 23, 2024
  • All you need to know about insuring a Hyundai car in the Philippines
    All you need to know about insuring a Hyundai car in the Philippines
    Carmudi PH, Sep 16, 2024

Compare

You can add 3 variants maximum*