Hyundai to build first factory in Southeast Asia

Hyundai To Build First Factory In Southeast Asia

South Korean car manufacturer Hyundai Motor has signed a preliminary deal to build a new factory in Indonesia, which would be its first car plant in Southeast Asia, Reuters reported.

The deal comes as Hyundai and its subsidiary Kia Motors struggle with an ongoing sales downturn in China, where they suspended two factories this year.

Hyundai said it will invest about $1.55 billion in the Indonesia auto manufacturing plant from now until 2030, including product development and operation costs.

The facility, to be built in the city of Bekasi, east of Jakarta, will start production in late 2021, with an annual capacity of 150,000 vehicles and a plan to grow that to 250,000 vehicles a year, Hyundai said.

Hyundai plans to produce small sport utility vehicles and multi-purpose vehicles (MPVs), while electric vehicles tailored for the Southeast Asian market are under consideration.

The production facilities in Indonesia will help Hyundai to avoid import tariffs ranging from five to 80 per cent in the Association of Southeast Asian Nations (ASEAN). The plant will cater to Indonesia, the region’s largest automobile market, and other countries within ASEAN.

Hyundai is far behind Japanese rivals in Southeast Asia, with its sales reaching 122,883 vehicles versus Toyota’s 854,032 from January to September this year, according to research firm LMC Automotive.

LMC Automotive forecast a four-per cent year-on-year decline in total vehicle sales in the ASEAN region in the fourth quarter, partly because the slowdowns in the Thai and Indonesian economies show no signs of abating.

Hyundai said key ASEAN countries including Indonesia, Thailand, Malaysia, Vietnam and Singapore are expected to see combined vehicle sales grow to 4.49 million units in 2026, from 3.16 million in 2017.

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South Korean car manufacturer Hyundai Motor has signed a preliminary deal to build a new factory in Indonesia, which would be its first car plant in Southeast Asia, Reuters reported. The deal comes as Hyundai and its subsidiary Kia Motors struggle with an ongoing sales downturn in China, where they suspended two factories this year. Hyundai said it will invest about $1.55 billion in the Indonesia auto manufacturing plant from now until 2030, including product development and operation costs. The facility, to be built in the city of Bekasi, east of Jakarta, will start production in late 2021, with an...

Hyundai To Build First Factory In Southeast Asia

South Korean car manufacturer Hyundai Motor has signed a preliminary deal to build a new factory in Indonesia, which would be its first car plant in Southeast Asia, Reuters reported.

The deal comes as Hyundai and its subsidiary Kia Motors struggle with an ongoing sales downturn in China, where they suspended two factories this year.

Hyundai said it will invest about $1.55 billion in the Indonesia auto manufacturing plant from now until 2030, including product development and operation costs.

The facility, to be built in the city of Bekasi, east of Jakarta, will start production in late 2021, with an annual capacity of 150,000 vehicles and a plan to grow that to 250,000 vehicles a year, Hyundai said.

Hyundai plans to produce small sport utility vehicles and multi-purpose vehicles (MPVs), while electric vehicles tailored for the Southeast Asian market are under consideration.

The production facilities in Indonesia will help Hyundai to avoid import tariffs ranging from five to 80 per cent in the Association of Southeast Asian Nations (ASEAN). The plant will cater to Indonesia, the region’s largest automobile market, and other countries within ASEAN.

Hyundai is far behind Japanese rivals in Southeast Asia, with its sales reaching 122,883 vehicles versus Toyota’s 854,032 from January to September this year, according to research firm LMC Automotive.

LMC Automotive forecast a four-per cent year-on-year decline in total vehicle sales in the ASEAN region in the fourth quarter, partly because the slowdowns in the Thai and Indonesian economies show no signs of abating.

Hyundai said key ASEAN countries including Indonesia, Thailand, Malaysia, Vietnam and Singapore are expected to see combined vehicle sales grow to 4.49 million units in 2026, from 3.16 million in 2017.

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