Hyundai’s new Indonesia plant to produce Creta, electric vehicles

Updated Mar 18, 2022

Same topic: Automotive Industry Updates

It will be Hyundai’s manufacturing hub for Southeast Asia markets.

Hyundai announced that it officially inaugurated its new manufacturing plant in Indonesia, marking the first factory of the Korean automaker in the Southeast Asian region.

The Korean automaker is strengthening its presence in the ASEAN region

With an investment of around USD 1.5-billion (about Php 78.5 billion), the new Indonesia plant is built on 777,000-sqm. land with a building area of 188,000-sqm. It aims to produce 150,000 Hyundai vehicles this year, with plans to increase the annual production capacity to 250,000 units per year in the future.

PT Hyundai Motor Manufacturing Indonesia (HMMI)’s new manufacturing plant will produce some of the most famed Hyundai models in the market, specifically the Creta and Ioniq 5. Moreover, the factory is geared to mass-produce battery electric vehicles (BEVs).

Hyundai Creta

“Today, we have witnessed a moment that we have been waiting for. First of all is the presence of Ioniq 5, as we want to have a huge transition to electric vehicles that [are] environmentally friendly. Moving forward, electric [vehicles] should be the main mode of transportation, especially in the new capital of Indonesia,” said Republic of Indonesia President Joko Widodo.

The new Hyundai manufacturing plant in Indonesia will play a key role in expanding the brand’s model in the Southeast Asian region including the Philippines. Around 40 percent of its vehicles will be produced for export to meet market demand in the said region.

It will be the brand's manufacturing hub for Southeast Asia

As such, our country could see the arrival of new Hyundai models such as the all-electric Ioniq 5 which sports eco-friendly benefits and a retrofuturism type of design. This can strengthen Hyundai Asia Resources, Inc. (HCPI)’s presence as the local passenger car (PC) lineup hasn’t received significant updates in recent times.

“Indonesia is the key hub for Hyundai Motor’s future mobility of strategy. This plant will play a key role in the automotive industry and specifically in the field of electric vehicles. Moreover, Hyundai will keep contributing to the establishment of the electric vehicle ecosystem in Indonesia through the synergy on the battery plant that we are currently developing,” said Executive Chair of Hyundai Motor Group Euisun Chung.

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Rex Sanchez

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Rex Sanchez grew up in Saudi Arabia where he saw and got into the automotive scene. He started his career for an aviation company in the said region, writing about turbines and rotors which are later distributed for educational purposes. And now, he joined Philkotse.com as a staff writer. Currently, he is the youngest on the team and is more than ready to grow in the field.

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