Hyundai Motor Produces Ioniq 5 at Indonesian Plant... Santa Fe and Strategic Models Also Introduced

$1.55 Billion Investment to Establish Annual Production Capacity of 250,000 Units... ASEAN's First Production Hub
President Joko Widodo and Hyundai Motor Group Chairman Chung Euisun Attend

Hyundai Motor Indonesia Factory Overview

[Asia Economy Reporter Choi Dae-yeol] Hyundai Motor Company has decided to manufacture the dedicated electric vehicle Ioniq 5 at its recently operational factory in Indonesia. While some overseas Hyundai plants in China and India have produced electric vehicles derived from existing models, Indonesia is the first overseas factory to produce the Ioniq 5, which was developed as a dedicated electric vehicle. The plan is to use the new factory as a strategic foothold to penetrate the market in the Association of Southeast Asian Nations (ASEAN), where Japanese cars have a stronghold.

Completed early this year, producing some models
Hyundai's 8th overseas factory... also developing local models

On the 16th (local time), the completion ceremony was held at Hyundai's factory in the Delta Mas industrial complex in Bekasi City, Indonesia, attended by Indonesian President Joko Widodo, Hyundai Motor Group Chairman Chung Eui-sun, and local government officials. The factory was completed earlier this year and has been producing some models, with the ceremony held belatedly. Chairman Chung said, "Indonesia is a key hub in Hyundai Motor's future mobility strategy," adding, "The Hyundai Indonesia factory will play a pivotal role in the electric vehicle sector, which will be an important pillar of Indonesia's future industry."

The Indonesia factory is Hyundai's eighth overseas plant by country. It is located on a 777,000㎡ site. By the end of this year, it will have an annual production capacity of 150,000 units, with plans to expand to 250,000 units in the future. The project involves an investment of $1.55 billion for product development and factory operation costs.

At the Hyundai Motor Group level, this is the first complete vehicle factory built in the ASEAN region. It is equipped with engine, assembly, painting, press, body plants, and a Mobility Innovation Center. The company explained that it is capable of developing, producing, and selling strategic models for the ASEAN market. The factory partially generates its power through solar power facilities and applies eco-friendly methods such as water-based painting to minimize volatile organic compound emissions. Air pollution reduction equipment has been installed to reduce pollution, and an infrared oven is used in the painting process to minimize heat loss.

Indonesian President Joko Widodo (fourth from the left) and Hyundai Motor Group Chairman Chung Eui-sun (sixth from the left), among others, are posing for a commemorative photo at the Hyundai Motor Indonesia plant completion ceremony.

First overseas mass production of dedicated electric vehicle Ioniq 5
Hyundai's electric vehicle market share was 87% last year
Santa Fe and local strategic new models to be introduced within the year

Hyundai has been producing and selling the compact sport utility vehicle (SUV) Creta in India and Brazil since early this year. After the completion ceremony, mass production of the Ioniq 5 also began. The Ioniq 5 is the first dedicated electric vehicle produced by Hyundai Motor Group in the ASEAN region and the first locally produced electric vehicle among brands operating there. Indonesia is rich in battery raw materials, a key component of electric vehicles, and the government is focusing on the electric vehicle industry as a major growth engine.

In Indonesia and the ASEAN region, Japanese cars hold over 70% market share, due to their early establishment of local factories and promotional activities. However, signs of change are emerging in the future electric vehicle market. According to Hyundai, 605 units of the Ioniq Electric and Kona Electric were sold locally last year, giving Hyundai an 87% share of the electric vehicle market. With the addition of the Ioniq 5, Hyundai plans to solidify its position as a leading electric vehicle operator in the region.

At the upcoming G20 summit in Bali this October, the Genesis G80 electrified model has been selected as the official vehicle for heads of state, and the Ioniq 5 will also be used as an official vehicle. Alongside this, the new factory plans to produce the SUV Santa Fe in the first half of this year. In the second half, a newly developed compact multipurpose vehicle (MPV) designed as an ASEAN strategic model will also be produced at this factory.

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