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.
Last December, Hyundai completed
construction of the factory with an initial production capacity of
150,000 units. Hyundai plans to invest in the plant amount of around
$1.55 billion 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.
Indonesia Government is spearheading expansion of EV ecosystem with its measures including converting 130,000 units of government vehicles to EVs by 2030. Hyundai 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 the Creta SUV but also competitive EV models such as the Ioniq 5 battery electric vehicle (BEV).
The Ioniq 5 is Hyundai’s first dedicated BEV model produced in Southeast Asia. The introduction of the 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 the Ioniq Electric and Kona Electric, which accounted for 87.3 percent 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 the SantaFe 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.
