Annual Production Capacity to Be Increased to 250,000 Units

President of the Republic of Indonesia Joko Widodo (fifth from left) and Hyundai Motor Group chairman Chung Eui-sun (sixth from left) pose for a photo during a ceremony marking the completion of Hyundai Motor Co.'s plant in Cikarang, Indonesia on March 16.

Hyundai Motor Co. has inaugurated Hyundai Motor Manufacturing Indonesia, its first factory in Southeast Asia, located in Deltamas industrial complex near Cikarang, Indonesia, 40 kilometers east of the capital city of Jakarta.

A ceremony was held on March 16 at the plant with the attendance of President of the Republic of Indonesia Joko Widodo, Indonesian government officials, Korean Ambassador to Indonesia Park Tae-sung, and Executive Chair of Hyundai Motor Group Chung Eui-sun.

Last December, Hyundai completed construction of the factory with an initial production capacity of 150,000 units. The company plans to invest around US$1.55 billion to increase the plant's production capacity to 250,000 units.

"Today, I inaugurate and launch Hyundai Motor Manufacturing Indonesia's plant and the first IONIQ 5 electric car produced in Indonesia," said Joko Widodo, President of the Republic of Indonesia. "I hope that this IONIQ 5 from Hyundai will become an important milestone in the development of Indonesia's electric vehicle ecosystem, and to further accelerate the electric car ecosystem that is more advance."

“Indonesia is a key hub for Hyundai Motor’s future mobility strategy. This plant will play a key role in the automotive industry and specifically in the field of electric vehicles,” said Chung, chairman of Hyundai Motor Group. “Moreover, Hyundai will keep contributing to the establishment of the electric vehicle ecosystem in Indonesia through the battery cell plant currently under construction. This will further help support Indonesia to play an important role in the global landscape. We hope Hyundai’s future technologies will be the foundation of greater collaboration with Indonesia.”

The Indonesian government is spearheading expansion of an EV ecosystem with its measures including converting 130,000 units of government vehicles to EVs by 2030.

Hyundai’s new plant will not only produce strategic model for the region such as CRETA SUV, but also competitive EV models such as IONIQ 5 battery electric vehicle (BEV).

The IONIQ 5 is Hyundai’s first dedicated BEV model produced in Southeast Asia. The introduction of 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 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 Santa Fe 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.

 

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