Hyundai Motor seeks to expand in Southeast Asia

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 Group said on July 1 that it is seeking to seize an early lead in the booming automotive market in Southeast Asia, thanks to its established presence in several countries in the Association of Southeast Asian Nations (ASEAN).

The group said that its first automotive manufacturing plant in the ASEAN region, Hyundai Motor Manufacturing Indonesia (HMMI), produced 22,520 vehicles in the first quarter of this year, achieving an operating rate of 110.9%. Hyundai said that this figure was the highest among all its overseas factories during the same period.

Last year’s operating rate at HMMI was just 50.3%, showing that both demand and supply for Hyundai in the local market have grown rapidly in the past year.

Image source: Hyundai Motor

 

Hyundai Motor has committed to investing approximately $1.55 billion in HMMI by 2030. HMMI currently oversees the production of vehicles including the super-mini SUV Creta, compact multi-purpose vehicle Stargazer, mid-size SUV Santa Fe, and the award-winning electric vehicle IONIQ 5. Through May 31st of this year, HMMI has sold a total of 1,927,92 vehicles.

Hyundai also highlighted its electric vehicle battery production in Southeast Asia. The company established a joint cell factory with South Korean battery manufacturer LG Energy Solution in Karawang New Industry City, Indonesia, in June last year.

The joint venture, named HLI Green Power, began mass production of cells in April this year. Hyundai stated that the Kona Electric will be the first vehicle to feature cells produced in Southeast Asia. The company noted that this will make Hyundai the first automaker in Indonesia to have a complete production and sales chain for electric vehicles.

Hyundai sold 7,475 electric vehicles in Indonesia last year, accounting for 43.8% of the market and becoming the country’s largest electric vehicle seller. Hyundai stated that although it is leading in the electric vehicle market, Chinese electric vehicle brands are actively expanding their business in Indonesia and reiterated its plan to pay more attention to the ASEAN region.