Hyundai opens EV factory in Indonesia – RM6.5 billion plant to build Ioniq 5, 250,000 unit production capacity

Hyundai opens EV factory in Indonesia – RM6.5 billion plant to build Ioniq 5, 250,000 unit production capacity

Just over two years after it was announced, the Hyundai Motor Manufacturing Indonesia (HMMI) plant has officially opened in the archipelago. Located some 40 km east of Jakarta in the Deltamas industrial complex near Cikarang, the facility is the South Korean carmaker’s first full-scale factory in Southeast Asia; more importantly, it is also capable of building battery electric vehicles.

Completed in December, HMMI will be manufacturing the facelifted Creta and the Ioniq 5 – the latter having only recently been launched in Malaysia. The plant has an initial annual capacity of 150,000 vehicles, with previous reports saying that around half of that output is earmarked for exports. Hyundai plans to invest US$1.55 billion (RM6.5 billion) in the factory, which will eventually be able to build 250,000 vehicles a year. Eco-friendly technologies include solar panels and the planned use of water-based paints.

Hyundai says the HMMI plant underlines its commitment to electric cars in the country, with the Ioniq 5 becoming the firm’s first dedicated EV to be built in ASEAN. The company is also building a battery cell factory in nearby Karawang together with LG Energy Solutions, which is expected to be completed in the first half of next year before being operational in 2024.

Hyundai is already a heavy hitter in the Indonesian EV segment, with the Ioniq Electric and Kona Electric accounting for 87.3% of all electric car sales in the country in 2021. Aside from the Creta and Ioniq 5, HMMI will also start building the Santa Fe in the first half of this year, along with a small MPV specific for the ASEAN market in the second half.

Contrary to what you might think, the opening of the Indonesian plant could mean more local assembly in Malaysia, not less. As we’ve previously reported, HMMI will be building completely knocked down (CKD) kits for the region, helping markets take advantage of local incentives.

Currently, Hyundai-Sime Darby Motors imports their CKD kits from Korea, which incurs tariffs of between five and 80%. Indonesian kits will sidestep this because of the ASEAN Free Trade Agreement (AFTA). New CKD SUVs are expected to arrive in Malaysia this year – the facelifted Santa Fe, perhaps?

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Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • John Gagal on Mar 17, 2022 at 7:02 pm

    Beribu2 tahniah MITI selective investment.

    Like or Dislike: Thumb up 10 Thumb down 1
    • Contradiction on Mar 18, 2022 at 10:51 am

      inb4
      Gomen invest money to attract EV, complain about wastage money for small EV numbers.
      Gomen dun invest money to attract EV, complain about Gahmen lagging in EV tech vs our neighbours.

      Like or Dislike: Thumb up 12 Thumb down 2
  • Zack Nakal on Mar 17, 2022 at 8:02 pm

    Malaysia will Oprah Posh Factory…

    Like or Dislike: Thumb up 5 Thumb down 1
  • Zelensky Blinken on Mar 17, 2022 at 9:27 pm

    The latest MRT3 cost how many billions?We are borrowing into uncertain times.
    But how come we cant attract this RM6.5 B mega Hyundai plant to Bolehland?
    Time we send a ‘real” rombongan tanpa melanchong to Jakarta to learn from His Excellency Jokowi.

    Like or Dislike: Thumb up 11 Thumb down 18
    • Aura89 on Mar 18, 2022 at 10:38 am

      I have seen the exact same verbatim story in several web sites and not one of them mentioned the “in return” part, only that “company so and so” will be investing billions and will create thousands of jobs.

      So it is very likely that the Malaysia is not paying Hyundai to invest in Indonesia as Jokowi do…

      Like or Dislike: Thumb up 14 Thumb down 3
    • Brian on Mar 18, 2022 at 11:23 am

      Don’t have to wait for battery. Will need to wait long long for parts to arrive.

      Like or Dislike: Thumb up 9 Thumb down 0
    • Do we really need send a rombongan to Jakarta to learn how corruption works? We ady have mamakdir showing us the way for 22 year+22months but we never learnt, we keep trying to improve our transparency & corruption levels against these countries that are drawing in more investments for something, EHEM!, there is no such thing as free lunch.

      Like or Dislike: Thumb up 9 Thumb down 6
      • Indon on Apr 30, 2022 at 9:48 am

        All your comments here is about jealousy to lndon. OMG, you even don’t use your brain due to busuk hati sangat. If lndon is so corrupt, companies would avoid investing there. Use your brain a bit.

        Like or Dislike: Thumb up 2 Thumb down 0
  • Don’t worry bros. According to people, EV is expensive to buy & use, a novelty at best, and we are better off with our ICE national cars. Let Indons have their low volume overpriced golf buggies.

    Like or Dislike: Thumb up 18 Thumb down 9
  • James KWON on Mar 18, 2022 at 12:04 pm

    and in Malaysia we give our only OEM brand to Geely to assemble low grade Chinese cars that no one would have bought under Geely brand. Indonesia assemble EV and high tech Global Hyundai Brand. we should rethink to get the OEMS back to Malaysia.

    Like or Dislike: Thumb up 9 Thumb down 4
    • Angry Voters on Mar 18, 2022 at 3:18 pm

      That is easy, reduce our corruption index below theirs so that it makes even easier to do business here thru grease money until it is endemic. You want that?

      Like or Dislike: Thumb up 9 Thumb down 2
    • Veyron Owner on Mar 18, 2022 at 4:10 pm

      Unless the minimum wage is dropped to RM700 per month or somewhere below Indonesias, there will never be any investment in the labour market.

      Like or Dislike: Thumb up 3 Thumb down 0
  • Congratulations to our neighbor Indonesia.

    Like or Dislike: Thumb up 10 Thumb down 2
    • Congrats to corruption. It works!

      Like or Dislike: Thumb up 6 Thumb down 6
      • R u sure? Isnt EV companies went there because of REM found in Indon needed for battery production? Cost cutting measures by car manufacturers to built there. Not coz of corruption alone.

        Like or Dislike: Thumb up 3 Thumb down 2
        • His Friend on Mar 20, 2022 at 5:48 pm

          If they had strong environmental conscious like we do, there is no way in heck they can get rights to mine but they did, how? Through undertablelaa my friend!

          Like or Dislike: Thumb up 2 Thumb down 3
      • Indon on Apr 30, 2022 at 9:50 am

        Jealoussyyyy hahaha

        Like or Dislike: Thumb up 0 Thumb down 0
        • pdesign on May 20, 2022 at 5:26 pm

          they don’t know that the hyundai ioniq 5 has sold 1.500 unit just in 6 days this will make many automakers invest in indo for ev mostly

          Like or Dislike: Thumb up 1 Thumb down 0
  • ROTI CANAI on Mar 18, 2022 at 7:43 pm

    azmin tell u we got porschay kilang

    Like or Dislike: Thumb up 2 Thumb down 0
  • All the hate towards indo in this comment section… You all need to see your psychologists. Why do you feel the need to talk sh*t about others just to make yourself feel superior?

    Like or Dislike: Thumb up 8 Thumb down 0
  • Keeenzeeer on Mar 22, 2022 at 6:17 pm

    If indonesia got big investment maybe because the incentives from govt and the attractive market and surely had the economic scale of assembling such an EV and quite low labor wage. Whats with such comments like accusing of corruption, no such a free meal blah blah. Why don’t we look at ourself and rethink?

    Like or Dislike: Thumb up 6 Thumb down 1
  • Lingkung on Apr 26, 2022 at 2:10 am

    Many hate comments to lndon. If lndon so corrupt, they wouldn’t invest there. Where is your logic? Why so jealous to lndon?

    Like or Dislike: Thumb up 1 Thumb down 0
 

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