Planning to Expand Output to 150,000 Units in 2023
Hyundai Motor Indonesia (HMMI), Hyundai Motor Co.'s subsidiary in Indonesia, has become the 6th-largest automobile producer in Indonesia by rolling out a total of 76,076 units in the first 11 months of the year. HMMI's output for the whole of 2022 is expected to top 80,000 units.
According to the Association of Indonesia Automotive Industries (GAIKINDO), HMMI placed 6th in the Indonesian market, following Toyota (548,985 units), Daihatsu (177,833 units), Mitsubishi Motors (141,535 units), Suzuki (125,189 units), and Honda (117,648 units).
HMMI began mass production of vehicles at its factory in the Deltamas Industrial Complex in Bekasi, Indonesia, from January this year. At first, it only produced the Hyundai Creta, but expanded its portfolio to include the electric vehicle IONIQ 5 and the Santa Fe. In the second half of the year, it began production of the Stargazer, a strategic model tailored to the local market, in earnest. The Stargazer is a seven-seat multipurpose vehicle (MPV) smaller than the Staria. It is steadily gaining popularity in Indonesia.
Thanks to local production, Hyundai Motor came in eighth in the Indonesian market in terms of sales, beating Japan’s Hino and China’s Wuling. As Hyundai Motor’s market share increases, Japanese car brands have started to give massive discounts.
Hyundai Motor plans to raise production at its Indonesian plant to 150,000 units next year. In the future, it plans to expand its production capacity to 250,000 units. If everything goes as planned, the Korean automaker will be able to even take second place in terms of production capacity.
In particular, Hyundai Motor is building a battery cell factory in Indonesia in partnership with LG Energy Solution and plans to preoccupy the Indonesian electric vehicle market. “The market share of Japanese cars exceeds 90 percent in the ASEAN region,” an industry insider said. “But new opportunities are emerging for Korean automakers in line with the transition to electric vehicles.”