Hyundai chooses Indonesia for Southeast Asian production hub

Hyundai Motor Company just inaugurated its first Southeast Asian factory. The factory is located in the industrial complex (Deltamas) near Cikarang, Indonesia. Hyundai Motor Manufacturing Indonesia is set to be the Korean automaker’s manufacturing hub for the Southeast Asian markets.

The capacity of the plant is said to be 150,000 units, but Hyundai plans to invest a further $ 1.55 billion to increase capacity to 250,000 units.

The new Hyundai production plant is also a showcase of Hyundai’s commitment to sustainable production practices. The new plant features solar panels to help meet the plant’s electrical needs, and Hyundai also plans to use water-based paints in the vehicle painting process.

Hyundai’s new plant will not only produce a strategic model for the region such as the Creta SUV, but it will also manufacture the Ioniq 5 electric vehicle.

Going forward, Hyundai will produce Santa Fe SUV model in the first half of 2022 and a small strategic people mover model for the Southeast Asian market in the second half of 2022.

lastly, the company is also working with LG Energy Solutions to build a battery cell factory in Karawang, Indonesia, targeted for completion in the first half of 2023 with production slated to start sometime in 2024.

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