Hyundai Motor targets top spot in Indonesian EV market

In Jakarta, the bustling capital city of Indonesia, the streets are dominated by a plethora of Japanese automotive giants such as Toyota and Honda. Amidst this sea of vehicles, one might notice a distinct subset bearing license plates adorned with a striking white hue accented by blue stripes. These plates signify a unique category of automobiles – electric vehicles, exempt from the alternating schedule regulations enforced in the city. Among these eco-friendly rides, Hyundai’s IONIQ 5 stands out as a prominent player.

"Business leaders prefer Hyundai's electric vehicles for their distinctive aesthetics and unparalleled functionality, offering a refreshing departure from the conventional Japanese brands,” Eco Amboro, a seasoned driver employed by a prominent business entity in Jakarta for close to a decade, shared insights gleaned from his experiences.

Despite the overwhelming dominance of Japanese automakers in the Indonesian automotive landscape—a staggering 90 percent of cars sold in the country last year originating from Japan—Hyundai Motor has carved out a significant niche within the electric vehicle segment. Outperforming competitors, Hyundai Motor secured a notable market share, accounting for 44.3 percent of electric vehicle sales in Indonesia, translating to 7,475 units sold.

Looking ahead to the third quarter of 2024, Hyundai Motor is poised to further solidify its position in the electric vehicle market in Indonesia. This anticipated growth is underpinned by the commencement of sales for electric vehicles equipped with locally manufactured batteries, slated to commence in the third quarter. The establishment of a battery production facility in Indonesia, a collaborative effort between Hyundai Motor and LG Energy Solution, is set to commence operations this year. Having finalized the construction of its manufacturing plant in Indonesia in 2022, Hyundai Motor marked a significant milestone as the first company in the Asia-Pacific region to do so. With the forthcoming supply of batteries sourced from this local facility, Hyundai Motor's foray into the ASEAN market is expected to gain momentum, bolstered by the availability of vehicles outfitted with locally sourced batteries.


Jae-Hyeng Kim monami@donga.com