Hyundai Motor Company is leading the electrification trend in the automotive industry in Indonesia, the world’s fourth-most-populous country and the world’s top nickel producer.
According to the Association of Indonesia Automotive Industries (GAIKINDO) on Friday, Hyundai sold 3,913 electric vehicles in Indonesia from January through July this year, reaching a 56.5 percent market share and ranking first in the country’s electric vehicle market. China’s Wuling came in second with 1,944 units (28.1 percent) and Japan’s Toyota third with 363 units (5.2 percent).
Hyundai ranked second to Wuling in the Indonesian EV market in 2022, but has held onto the top spot this year thanks to strong sales of the all-electric IONIQ 5.
This strong sales performance is driven by the IONIQ 5’s local production and sales system. The IONIQ 5 is the first electric vehicle model to be produced locally by an automaker in Indonesia.
The IONIQ 5 took the honor of being the first EV to be produced and sold in the Indonesian EV market, growing into an icon of the local EV market and a pivotal part of the EV ecosystem in Indonesia.
Hyundai plans to further accelerate its transition to electrification in Indonesia, a country with abundant resources such as nickel, a key material for EV batteries.
At the recent Indonesia International Motor Show (GIIAS) 2023 in Jakarta, Hyundai took the wraps off its second electric vehicle, the IONIQ 6.
When a battery cell joint venture plant being built by Hyundai Motor Group and LG Energy Solutions in Indonesia goes live next year, Hyundai Motor is expected to further strengthen its penetration of the Indonesian EV market based on the establishment of a stable supply chain.
In addition, Hyundai Motor Indonesia (HMID) signed a memorandum of understanding (MOU) with Lippo Malls Indonesia, the largest local retailer, on Sept. 5 (local time) to increase the number of EV charging stations. Through this collaboration, Hyundai and Lippo Malls Indonesia plan to install EV charging stations at 52 Lippo Malls, which are a common sight across Indonesia.
HMID elevated its automobile sales ranking in Indonesia from 13th place in 2021 to 8th place in 2022 and 6th place in July 2023.
The amount of Hyundai’s EV sales increased more than tenfold, from 3005 units in 2021 to 31,965 units in 2022, when the Korean automaker began local production in Indonesia, and the cumulative number of units sold in the first seven months of this year was 20,065, up 48.1 percent year on year.
Hyundai’s 3.4 percent market share in the same period was still far behind major Japanese players such as Toyota (No. 1, 32.5 percent), Daihatsu (No. 2, 19.6 percent), Honda (No. 3, 14.5 percent), Suzuki (No. 4, 8.0 percent), and Mitsubishi (No. 5, 7.6 percent), but Hyundai is breaking the monopoly that Japanese automakers have held in Indonesia for more than 50 years.