Hyundai is set to invest US$880 million (RM3.67 billion) in Indonesia, and has plans to produce electric vehicles (EVs) in the country. This was revealed by Indonesian deputy minister for industry Harjanto, reported by Reuters.
The government official said that the planned factory will have an annual capacity of 250,000 units, including EVs. He added that the plan was to export 53% of the proposed plant’s output, mostly to ASEAN and Australia, with the remaining 47% for domestic consumption.
Hyundai – which along with Kia brand is the world’s number five automaker by sales – has not publicly commented on its plans for Indonesia, but said that it was “considering various ways to expand” in new markets including Southeast Asia. The company however said that nothing had been decided regarding new production facilities in the region.
The newswire’s report adds that Hyundai briefed South Korean union officials earlier this year about a plan to build a factory in Indonesia, according to three people familiar with the matter. One of the challenges it identified was building sales networks, the sources added. Hyundai does not have its own factory in ASEAN, although some of its vehicles are assembled in Vietnam and Malaysia.
It’s noted that Hyundai’s belated move to set up its first car plant in our region fits into the carmaker’s current strategy of reducing its reliance on China, where competition is intense and its sales have suffered from diplomatic tensions between Seoul and Beijing. Also, Indonesia has rich reserves of nickel laterite ore, a vital ingredient for the lithium-ion batteries used to power EVs.
However, ASEAN is very much dominated by Japanese carmakers who have long established their presence here, and it will be a big task for Hyundai-Kia to gain a foothold in Thailand and Indonesia. To put things in perspective, in Indonesia, Hyundai sold only 1,372 vehicles from January to October this year, compared with Toyota’s 463,565 units.
GALLERY: Hyundai Kona Electric at KLIMS 2018
GALLERY: Hyundai Ioniq Electric at BIMS 2018
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Indo: terima kaseh Perotiga.
Mys: terima kaseh proton
Habis lah Malaysia. Dedak banyak sampai org pun sudah pilih negara lain
Harap Malaysia baru akan hapus budaya dedak
Acc to basher logic, they will bring all money to their country
Nobody wants to invest in Malaysia because orang puteh, jepunis and koreans think our nation is full of thieves and full of songlap.
Investors after reading Billion Dollar Whale already takut la. 60 years of corruption
Yes. Because the Master of Thieves is back with his new band of 40 bandits.
You mean like takatagate, steelgate, dieselgate and many other gates
Perotiga has not chased this Hyundai. It is the previous Government that was so corrupted and dirty, Hyundai also scared to invest here.
even Dyson also don’t want to invest in Malaysia. They choose Singapore where labour is so expensive.
Now Dyson going to make EV cars in Singapore. Singapore labour is 6X more expensive than Malaysia and yet, Dyson chose Singapore
…and investors still dont want to invest coz current gov lineup is clueless, brain dead, cant deliver or keep promises and only knows politicking instead of properly running the country.
According to basher logic, it is useless to let foreign car makers to build assembly plant because all the money goes to them
According to MAI, Malaysia already beat Thailand and is now above Thailand is car industry.
I think MAI is sleeping. Lazy type.
MAI great NAP plan the game changer,
Please read full articles. The announcement made by Indonesia’s Minister but no confirmation yet from Hyundai itself.
But but but if follow basher logic, they bring all the money to their countries
MAI say Proton and MAI themselves are the game changer.
Iriz also they say gamechanger!
First Thailand.. now Indonesia… we are being left out…
First Thailand.. now Indonesia… next Vietnam.
The worst rot since 2008 started Sixty years ago
Go Indon as you wish. We got third national car using “quite a huge fund” from the our government.
Malaysia sekarang dah jadi tempat australia, new zealand, europe buang sampah. Lepas tu menteri kata ini industri baru, recycle sampah dari luar negara sampai sungai kita pun dah jadi macam longkang. Jiran2 semua dapat fdi teknologi kita dapat sampah
You think to recycle sampah is to throw it into river?
Automakers are avoiding this new malaysia like a plague. So sad…
Not just automakers but other industries as well. KLCI is dropping close to its historic bottom.
Ini salahan besar Sime darby hyundai..
the different between hyundai malaysia and hyundai indonesia is that hyundai indonesia is hold from the principal the principal manage hyundai market in indonesia
Oh now they go to Indonesia. Malaysia go back to your school to study double E.
What only USD880mil, its like a peanuts compared to USD400B that we’re going to receive.
Ha ha we hv menteri who cant imagine how much usd400bil
We have bashers who contradict themselves too
It’s so sad to see Malaysia losing all the good names to other counties with less automotive background and we stuck with proton and Chinese companies with copy cat technologies . This is not progress
Good names? Assemblers are not real makers
Such a stupid decision just like throwing money into trash bin. Hyundai never even have a good sales in Indon and want to invest in EV?
Perotiga has not chased this Hyundai. It is the previous Government that was so corrupted and dirty, Hyundai also scared to invest here.
Where is abang Maidani hiding nw?? Last year boasted want to turn Malaysia into EEV hub la blablabla
….plan belum succeed lepas tu tahun ni tukar cerita mau Malaysia jadi leader in autonomous driving hahaha…EEV definition for Maidani is petrol cars but other countries REAL ELECTRIC OR HYBRID ETC
MAI is a waste of money. Just feeding lazy people to get free jobs. Waste of money totally to keep MAI going on
From 2010, MAI best govt agency under MITI
Malaysian not fan of Hyundai Car even cheaper than other brand. Korea brand not strong as Chinese, German and Japan brand in Malaysia market.
Total Sales Jan – Nov 2018
Toyota 325.500 unit
Daihatsu 186.449 unit
Honda 149.083 unit
Mitsubishi Motors 133.966 unit
Suzuki 109.698 unit
Mitsubishi Fuso 47.898 unit
Hino 35.870 unit
Isuzu 23.607 unit
Wuling 14.677 unit
Datsun 10.202 unit
NAP is just a factor, but the main reason hyundai chooses indonesia is simply this :
“Also, Indonesia has rich reserves of nickel laterite ore, a vital ingredient for the lithium-ion batteries used to power EVs.”
Hyundai build it in indonesia because 47% of target market is from local. if they built here how to get 47% from local? lol no one wants to buy hyundai here
Why indo? 1) cheaper labor, overhead, construction cost.
2) lax law & regulations
3) prime market – majority still doesn’t own a car
4) access to ASEAN market.
5)improving education, many university, engineering & technical unis.
Talk what you want, but after seeing their ITB, you’ll be amazed.
Hi Tun, dah faham? Malaysia do not need, and do not have a market for another new branding of national car! Indonesia has 210 Mio population. Thailand has 70 millions with annual demand of 1 million pieces.
Malaysia only have crony who waiting to use national car to distribute government money!!!