Jeong Eui-seon Visiting Indonesia, Electrified Vehicle Competition Intensifies

Discussion on Expanding Electric Vehicle Cooperation with Indonesian President Joko Widodo

Hyundai Motor Group Chairman Chung Eui-sun (left) and Indonesian President Joko Widodo are posing together at the "Future Electric Vehicle Ecosystem" event held on the 25th at JI Expo in Jakarta, Indonesia. (Photo by Hyundai Motor)

[Asia Economy Reporter Changhwan Lee] Chung Eui-sun, Chairman of Hyundai Motor Group, who is visiting Indonesia, will meet with Indonesian President Joko Widodo to discuss plans for electric vehicle production and expanded cooperation.

Hyundai Motor Group plans to actively launch electric vehicles in the ASEAN (Southeast Asia) region, centered on Indonesia, to increase its market share.

On the 25th (local time), Chairman Chung attended an electric vehicle roadmap announcement event hosted by the Indonesian government at JI Expo in North Jakarta. The event was attended not only by President Joko Widodo and local government officials but also by representatives from Hyundai Motor Group and LG Energy Solution's Indonesian battery cell joint venture factory.

On that day, Chairman Chung conveyed his intention to expand production and sales in line with Indonesia's electric vehicle roadmap to President Joko Widodo and Indonesian government officials, requesting their cooperation.

Indonesia, along with Thailand, is the largest automotive market in ASEAN and has traditionally been considered a stronghold of Japanese automobile companies. Accordingly, Hyundai Motor Group has been pioneering the Indonesian market with a strategy centered on electric vehicles for the past one to two years.

According to local media, Hyundai sold about 600 electric vehicles this year, including the Kona EV and Ioniq EV, ranking first in electric vehicle sales. Hyundai plans to more aggressively target the local electric vehicle market by expanding electric vehicle sales models starting next year.

The Indonesian government's commitment to supporting the electric vehicle industry is also clear. Since August 2019, the Indonesian government has been continuously raising the localization rate of parts, which serves as the basis for various incentives such as exemption from luxury tax on electric vehicles, through a presidential decree to foster and expand the electric vehicle industry.

Local factories are also being completed one after another. Hyundai's first ASEAN production plant, under construction in Bekasi on the outskirts of the capital Jakarta, will begin mass production in January next year. Additionally, LG Energy Solution is investing $1.1 billion (about 1.2 trillion KRW) to build a battery cell joint venture factory in a new business complex in the Karawang area of Indonesia.

This content was produced with the assistance of AI translation services.