Hyundai to invest $880m and make EVs in Indonesia

Hyundai to invest $880m and make EVs in Indonesia

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.

Hyundai to invest $880m and make EVs in Indonesia

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.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Indo: terima kaseh Perotiga.

    Like or Dislike: Thumb up 27 Thumb down 0
    • Petoron Sagu on Dec 21, 2018 at 3:58 pm

      Mys: terima kaseh proton

      Like or Dislike: Thumb up 7 Thumb down 0
      • Khairul on Dec 24, 2018 at 9:04 am

        Habis lah Malaysia. Dedak banyak sampai org pun sudah pilih negara lain

        Harap Malaysia baru akan hapus budaya dedak

        Like or Dislike: Thumb up 1 Thumb down 1
        • basherlogic on Dec 24, 2018 at 6:19 pm

          Acc to basher logic, they will bring all money to their country

          Like or Dislike: Thumb up 1 Thumb down 1
    • Ghani Othman on Dec 21, 2018 at 8:38 pm

      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

      Like or Dislike: Thumb up 29 Thumb down 11
      • Yes. Because the Master of Thieves is back with his new band of 40 bandits.

        Like or Dislike: Thumb up 1 Thumb down 0
      • Notakata on Dec 23, 2018 at 2:22 pm

        You mean like takatagate, steelgate, dieselgate and many other gates

        Like or Dislike: Thumb up 1 Thumb down 0
    • Ghani Othman on Dec 21, 2018 at 8:55 pm

      Perotiga has not chased this Hyundai. It is the previous Government that was so corrupted and dirty, Hyundai also scared to invest here.

      Like or Dislike: Thumb up 16 Thumb down 13
      • John Menangis Kuat Kuat on Dec 22, 2018 at 4:32 pm

        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

        Like or Dislike: Thumb up 1 Thumb down 0
      • redpilled on Dec 23, 2018 at 11:09 am

        …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.

        Like or Dislike: Thumb up 3 Thumb down 0
    • basherlogic on Dec 21, 2018 at 9:21 pm

      According to basher logic, it is useless to let foreign car makers to build assembly plant because all the money goes to them

      Like or Dislike: Thumb up 17 Thumb down 8
      • Rahim Chik on Dec 22, 2018 at 3:15 pm

        According to MAI, Malaysia already beat Thailand and is now above Thailand is car industry.

        I think MAI is sleeping. Lazy type.

        Like or Dislike: Thumb up 1 Thumb down 0
    • theanswer on Dec 22, 2018 at 3:00 pm

      MAI great NAP plan the game changer,

      Like or Dislike: Thumb up 13 Thumb down 0
      • Please read full articles. The announcement made by Indonesia’s Minister but no confirmation yet from Hyundai itself.

        Like or Dislike: Thumb up 1 Thumb down 5
      • Basherlogic on Dec 23, 2018 at 2:23 pm

        But but but if follow basher logic, they bring all the money to their countries

        Like or Dislike: Thumb up 1 Thumb down 0
    • Rahim Chik on Dec 22, 2018 at 3:13 pm

      MAI say Proton and MAI themselves are the game changer.

      Iriz also they say gamechanger!

      Like or Dislike: Thumb up 0 Thumb down 0
  • thepolygon on Dec 21, 2018 at 4:24 pm

    First Thailand.. now Indonesia… we are being left out…

    Like or Dislike: Thumb up 7 Thumb down 0
    • aznilD on Dec 23, 2018 at 8:44 pm

      First Thailand.. now Indonesia… next Vietnam.
      The worst rot since 2008 started Sixty years ago

      Like or Dislike: Thumb up 5 Thumb down 0
  • newme on Dec 21, 2018 at 4:28 pm

    Go Indon as you wish. We got third national car using “quite a huge fund” from the our government.

    Like or Dislike: Thumb up 7 Thumb down 1
  • Ahmadjr on Dec 21, 2018 at 4:34 pm

    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

    Like or Dislike: Thumb up 12 Thumb down 0
    • My england is bad on Dec 23, 2018 at 2:25 pm

      You think to recycle sampah is to throw it into river?

      Like or Dislike: Thumb up 2 Thumb down 0
  • Gabriel on Dec 21, 2018 at 5:19 pm

    Automakers are avoiding this new malaysia like a plague. So sad…

    Like or Dislike: Thumb up 27 Thumb down 0
    • Not just automakers but other industries as well. KLCI is dropping close to its historic bottom.

      Like or Dislike: Thumb up 1 Thumb down 0
  • Shafiq on Dec 21, 2018 at 5:24 pm

    Ini salahan besar Sime darby hyundai..

    Like or Dislike: Thumb up 5 Thumb down 1
    • pdesign on May 28, 2022 at 1:12 pm

      the different between hyundai malaysia and hyundai indonesia is that hyundai indonesia is hold from the principal the principal manage hyundai market in indonesia

      Like or Dislike: Thumb up 0 Thumb down 0
  • Haidi on Dec 21, 2018 at 5:35 pm

    Oh now they go to Indonesia. Malaysia go back to your school to study double E.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Peanuts on Dec 21, 2018 at 5:40 pm

    What only USD880mil, its like a peanuts compared to USD400B that we’re going to receive.

    Like or Dislike: Thumb up 8 Thumb down 1
  • Fadzili Rahman on Dec 21, 2018 at 6:36 pm

    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

    Like or Dislike: Thumb up 7 Thumb down 3
  • Hyundai got no RV in Indon on Dec 21, 2018 at 8:35 pm

    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?

    Like or Dislike: Thumb up 15 Thumb down 4
  • Ghani Othman on Dec 21, 2018 at 8:56 pm

    Perotiga has not chased this Hyundai. It is the previous Government that was so corrupted and dirty, Hyundai also scared to invest here.

    Like or Dislike: Thumb up 7 Thumb down 10
  • Sohai (not ori) on Dec 21, 2018 at 9:48 pm

    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

    Like or Dislike: Thumb up 4 Thumb down 0
    • Rahim Chik on Dec 22, 2018 at 3:19 pm

      MAI is a waste of money. Just feeding lazy people to get free jobs. Waste of money totally to keep MAI going on

      Like or Dislike: Thumb up 0 Thumb down 0
    • Yeast slum on Dec 22, 2018 at 10:40 pm

      From 2010, MAI best govt agency under MITI

      Like or Dislike: Thumb up 2 Thumb down 0
  • FanHyundai on Dec 22, 2018 at 8:36 am

    Malaysian not fan of Hyundai Car even cheaper than other brand. Korea brand not strong as Chinese, German and Japan brand in Malaysia market.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Kevin on Dec 22, 2018 at 9:53 am

    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

    Like or Dislike: Thumb up 4 Thumb down 0
  • Tempe kimchi on Dec 22, 2018 at 3:40 pm

    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.”

    Like or Dislike: Thumb up 3 Thumb down 0
  • jamal on Dec 23, 2018 at 2:17 pm

    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

    Like or Dislike: Thumb up 2 Thumb down 0
  • Max291 on Dec 23, 2018 at 2:56 pm

    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.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Vincent on Dec 24, 2018 at 12:48 pm

    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!!!

    Like or Dislike: Thumb up 1 Thumb down 0
 

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