The carmaker is targeting the huge Southeast Asian market, using Indonesia as a bridgehead
Hyundai Motor Group CEO Chung Eui-sun speaks at an event marking the completion of its electric vehicle ecosystem with Indonesia on July 3, 2024. (Courtesy of Hyundai Motor)
Hyundai Motor Group is accelerating its efforts to enter the Southeast Asian market using Indonesia as a bridgehead. It has established a complete auto manufacturing system, from batteries to vehicle assembly, in Indonesia, which has the largest auto market of any member country of the Association of Southeast Asian Nations.
Hyundai Motor Group announced on Wednesday that it held a ceremony to mark the completion of its electric vehicle ecosystem with the Indonesian government.
HLI Green Power, an Indonesian joint venture between Hyundai Motor Group and LG Energy Solution, began producing battery cells in the second quarter of this year. These battery cells are among the components of the all-new Kona Electric that will be launched in Indonesia on July 17. The Kona Electric is produced at a Hyundai factory built in Indonesia in 2022.
With a population of around 700 million, the ASEAN market is seen as having considerable potential for the next generation of vehicles. Indonesia is the largest country in ASEAN, accounting for 29.9% of the region’s automobile market.
Hyundai appears set to use its EV ecosystem in Indonesia as a base for expansion into the rest of Southeast Asia. The region was once the territory of Japanese automakers, but recently Chinese EV makers have flourished in countries like Thailand and Malaysia, where they now hold the top market share.
By Jun Seul-gi, journalist
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