[Asia Economy Reporter Changhwan Lee] Hyundai Motor Company has achieved the number one market share in electric vehicles in Indonesia, a major automotive market in Southeast Asia.
According to local media on the 20th, Hyundai Motor sold 693 electric vehicles in Indonesia last year, recording a market share of 87.3%. Among the vehicles sold locally were 366 Kona EVs and 239 Ioniq EVs.
Indonesia, considered the largest automotive market in Southeast Asia along with Thailand, still has a very low electric vehicle adoption rate. However, with strong government commitment to fostering electric vehicles, the market is expected to grow rapidly in the future.
The Indonesian government has been continuously raising the localization rate of parts, which serves as the basis for various incentives such as exemption from luxury tax on electric vehicles, through a presidential decree issued in August 2019 to promote the electric vehicle industry and expand its adoption.
In response, Hyundai has targeted the local automotive market based on electric vehicles. They completed the first automobile production plant in Southeast Asia in Bekasi, on the outskirts of the capital Jakarta, and started mass production this year. It is also known that major electric vehicles like the Ioniq 5 will be produced locally.
Additionally, Hyundai is constructing a battery cell joint venture plant in the Karawang new business complex in Indonesia by investing $1.1 billion (approximately 1.2 trillion KRW) together with LG Energy Solution.
Based on these investments in Indonesia, Hyundai plans to expand its market share in Southeast Asia. Currently, Hyundai's market share is not high in Southeast Asia except for Vietnam. While Hyundai holds the number one market share in Vietnam, its share across the entire Southeast Asian market is estimated to be only around 5%.
Ha Sung-jong, head of Hyundai Motor's Indonesia sales corporation, said, "Kona EV and Ioniq EV have set new records in the Indonesian electric vehicle market," adding, "There will be more achievements in the future."
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