Hyundai Motor Company has signed a Memorandum of Understanding (MOU) with the government of Indonesia to build its very first manufacturing plant in the country. Why Indonesia? Hyundai sees the country as a potential growth into the ASEAN markets as well as securing future growth engines in the global automotive market.
Their plan is to build a high-tech manufacturing plant in Kota Deltamas where a total of 8.35 million-square-feet (and around RM6.5 billion investment) will be implemented to cater everything they need to manufacture future Hyundai models, especially for the ASEAN market. It will also be strategically located near the outskirts of Jakarta which will also provide ample job opportunities for the locals residing in the nearby areas.
According to Euisun Chung, Executive Vice Chairman of the Group, “The establishment of Hyundai Motor’s manufacturing plant in Indonesia has been made possible thanks to the continuous cooperation and support from the Indonesian government. Hyundai will continue to listen actively and respond to the Indonesian government’s expectations and policies regarding eco-friendly vehicles, while continuously contributing to the ASEAN community.”
Production is expected to commence somewhere in the second half of 2021 with an annual production capacity of 150,000 units. The plant will also have the ability to be upgraded to a total output of 250,000 units once it reaches full capacity and Hyundai is also exploring the production of ASEAN-specific electric vehicles (EV) in its Indonesian plant.
