Hyundai to start assembling electric vehicles in Indonesia in March, hoping to conquer the SEA market

The joint venture of LG Energy Solution and Hyundai Motor will begin production of traction batteries in Indonesia only by 2024, but the Korean auto giant will have a local plant in this country by the end of this year, which will allow the production of electric vehicles in March. Hyundai sees Indonesia as an important production staging area for its advance into the Southeast Asian market, which is still dominated by Japanese competitors.

Image source: Business Korea

Image source: Business Korea

As noted Business Korea, Chairman of the Board of Directors of Hyundai Motor Chung Eui-sun at a specialized event in Jakarta said that the company will start producing electric vehicles at a plant under construction in Indonesia next year. For the first time, cars with internal combustion engines will also be produced here. At first, 150 thousand electric vehicles per year will leave the assembly line of the enterprise, in the future this number will be increased to 250 thousand units. In 2024, a half-hour drive from this site, a joint venture with LG Energy Solution will start working to produce traction batteries from raw materials mined in Indonesia.

With the exception of Vietnam, cars from the Japanese brands Toyota and Honda now dominate in Southeast Asia, but these manufacturers are rather inert in the transition to the production of battery electric vehicles. Hyundai Motor intends to use this opportunity, combined with the emergence of an enterprise in Indonesia, to strengthen its position in the electric vehicle market in the region. An electric version of the Genesis G80 sedan has even been selected as an executive vehicle at a summit to be held in Bali in the fourth quarter of next year.

Hyundai Motor is at the same time an active supporter of the promotion of hydrogen transport, and therefore will develop the corresponding infrastructure in Indonesia in the form of production facilities and filling stations. According to the head of Hyundai Motor, the country has excess potential in obtaining electricity from alternative sources. The processing of used lithium batteries will also be developed here.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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