Indo plant ups Hyundai output by 250k units p.a.

UPDATED: 22/03/2022

HYUNDAI has completed construction of its first manufacturing plant in Indonesia, which will offer an annual production capacity of up to 250,000 vehicles.

It will be the first factory in the region to produce Hyundai’s Ioniq 5 electric car, which will be built alongside the Creta small crossover and Santa Fe large SUV, as well as a new people mover that was developed specifically for regional markets.

Hyundai Motor Company Australia general manager corporate affairs Bill Thomas told GoAuto there was no confirmation of potential export markets for the new plant but said additional production of the currently allocation-limited Ioniq 5 “could be very useful for us”.

“We aren’t yet in a position to talk about the potential for sourcing those for the Australian market,” he said.

The Deltamas facility is located 40km east of the Indonesian capital, Jakarta, and was opened by dignitaries including the president of the Republic of Indonesia, Joko Widodo, coordinating minister of maritime and investment, Luhut Binsar Lahadalia, the minister of transportation, Budi Karya, minister of state-owned enterprises, Erick Thohir, and state secretary Pratikno.

The South Korean ambassador to Indonesia, Park Tae-sung, was also in attendance alongside Hyundai Motor Group executive chairman, Euisun Chung.

Hyundai says it plans to invest a further $US1.55 billion ($A2.12 billion) in the facility to raise annual production from an initial figure of 150,000 units to 250,000 units in the coming years.

“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 Mr Chung.

“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.”

The Indonesian government is expanding the country’s EV ecosystem and plans to convert 130,000 government vehicles to electric power by the end of the decade.

Hyundai is also working with LG Energy Solutions to build a battery-cell factory in Karawang, which is projected to be completed in the first half of 2023 and to start production in 2024.

The locally produced batteries would be fitted to EV models produced at the Deltamas plant to further enhance the EV models’ price competitiveness, Hyundai said in a statement. 

Hyundai has more than 100 dealerships located across 40 cities throughout Indonesia and said that establishing a vehicle manufacturing plant in Indonesia reflected its commitment to bringing “game-changing innovations” to the country, both in terms of products and services.

The company said it would continue to develop strategic models to cater to local markets’ needs, while growing and developing training activities with its local partners in Indonesia to “exchange knowledge and technology”.

“We hope Hyundai’s future technologies will be the foundation of greater collaboration with Indonesia,” Mr Chung added.

By building Hyundai models locally, the company could take a more customer-centric approach to production and sales, the firm said.

By building cars to order and allowing customers to choose product specifications upon order, it would lower inventory costs for local dealers.

The process will be managed by Hyundai’s Click-to-Buy online platform, which enables customers to carry out all stages of their vehicle purchase experience from their home, while the myHyundai Indonesia app will support the “daily lifestyle” needs of Hyundai vehicle owners, including the booking of scheduled servicing.