Hyundai opens first car plant in Southeast Asia, starts electric vehicle production

Hyundai’s new electric vehicle plant outside Jakarta

South Korean carmaker Hyundai Motor opened its first Southeast Asian manufacturing plant in Indonesia on March 16 that will produce Indonesia’s first locally assembled electric vehicles. The launch is part of Indonesian President Joko Widodo’s goal of developing a full electric vehicle supply chain, utilising the country’s mineral resources, mainly nickel ore.

The plant, located in the Deltamas industrial complex 40 kilometers east of the capital city of Jakarta, will start with mass production of Hyundai’s flagship electric vehicle Ioniq 5, the carmaker said. It plans to invest 1.92 trillion won ($1.56 billion) in the plant to manufacture a starting capacity of 150,000 vehicles per year, to be later expanded to 250,000 annually.

Incentives for electric vehicle investors

The government of Indonesia is providing incentives and has “removed red tape” to boost investment in electric vehicle development, Widodo said at the inauguration ceremony of the plant.

“Our country has large mineral resources that can be used for development of electric cars,” he said, noting that “we need to become an important player in the global supply chain of electric cars.”

Apart from nickel, Indonesia also mines cobalt and has large deposits of bauxite and copper ores, which can also be used for electric vehicle production, Jokowi said.

Car battery plant to open in 2024

Hyundai noted that the new plant would be linked with a nearby Hyundai-LG Energy Solution joint venture battery plant, which is scheduled to open in 2024. By then, all electric vehicles produced in Indonesia will use locally made batteries and other key components.

In Indonesia, the carmaker said it would also leverage on 100 dealerships across 40 cities throughout the country and collaborate with local partners to set up training activities to exchange knowledge and technology.

Vehicles will be sold under a build-to-order scheme, allowing customers to choose product specifications when ordering them. The local distributor plans to launch a click-to-buy online platform service as well.



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[caption id="attachment_38305" align="alignleft" width="300"] Hyundai's new electric vehicle plant outside Jakarta[/caption] South Korean carmaker Hyundai Motor opened its first Southeast Asian manufacturing plant in Indonesia on March 16 that will produce Indonesia’s first locally assembled electric vehicles. The launch is part of Indonesian President Joko Widodo's goal of developing a full electric vehicle supply chain, utilising the country’s mineral resources, mainly nickel ore. The plant, located in the Deltamas industrial complex 40 kilometers east of the capital city of Jakarta, will start with mass production of Hyundai’s flagship electric vehicle Ioniq 5, the carmaker said. It plans to invest 1.92...

Hyundai’s new electric vehicle plant outside Jakarta

South Korean carmaker Hyundai Motor opened its first Southeast Asian manufacturing plant in Indonesia on March 16 that will produce Indonesia’s first locally assembled electric vehicles. The launch is part of Indonesian President Joko Widodo’s goal of developing a full electric vehicle supply chain, utilising the country’s mineral resources, mainly nickel ore.

The plant, located in the Deltamas industrial complex 40 kilometers east of the capital city of Jakarta, will start with mass production of Hyundai’s flagship electric vehicle Ioniq 5, the carmaker said. It plans to invest 1.92 trillion won ($1.56 billion) in the plant to manufacture a starting capacity of 150,000 vehicles per year, to be later expanded to 250,000 annually.

Incentives for electric vehicle investors

The government of Indonesia is providing incentives and has “removed red tape” to boost investment in electric vehicle development, Widodo said at the inauguration ceremony of the plant.

“Our country has large mineral resources that can be used for development of electric cars,” he said, noting that “we need to become an important player in the global supply chain of electric cars.”

Apart from nickel, Indonesia also mines cobalt and has large deposits of bauxite and copper ores, which can also be used for electric vehicle production, Jokowi said.

Car battery plant to open in 2024

Hyundai noted that the new plant would be linked with a nearby Hyundai-LG Energy Solution joint venture battery plant, which is scheduled to open in 2024. By then, all electric vehicles produced in Indonesia will use locally made batteries and other key components.

In Indonesia, the carmaker said it would also leverage on 100 dealerships across 40 cities throughout the country and collaborate with local partners to set up training activities to exchange knowledge and technology.

Vehicles will be sold under a build-to-order scheme, allowing customers to choose product specifications when ordering them. The local distributor plans to launch a click-to-buy online platform service as well.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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