60% of Construction Work Completed
Hyundai Motor's plant in the Deltamas Industrial Complex near Jakarta, the capital of Indonesia, will begin operation in the second half of next year. Currently, construction work is about 60 percent done.
The plant will initially produce compact sport utility vehicles and sedans. It is expected to produce hybrid cars and electric vehicles as well in the future. Hyundai Motor has recently shows moves to use Indonesia as an outpost for producing and selling electric vehicles in Southeast Asia.
Annual car sales in Indonesia have reached one million units, which meant that the nation is the largest car market among major Southeast Asian countries. In 2019, 1.03 million units were sold in the Indonesian automobile market.
Hyundai Motor plant’s annual production volume is 150,000 units. Half of the factory's output is for export purposes. The Korean automaker is considering ramping up its annual production to 250,000 units, depending on the situation.
Hyundai Motor predicts that the Indonesian plant will help boost its share of the Southeast Asian market to 25 percent.
Preparations are being made to sell electric vehicles in Indonesia, too. At the end of 2019, Hyundai Motor supplied the IONIQ Electric to Grab, which is engaged in the car sharing business in Indonesia. In particular, Hyundai Motor’s cooperation with Grab is expected to create dramatic synergies in strengthening the carmaker’s position in the Indonesian market.